How Will XRP Be Affected with the Recent Partnership Between SWIFT and R3 Blockchain Firm
The global messaging system SWIFT announced that it will be integrating R3’s open source blockchain solution at a proof-of-concept stage. The information was released by SWIFT’s CEO Gottfried Leibbrandt during the Paris Fintech Forum on January 30.
This is something that Ripple should be paying close attention to since the company is currently trying to offer services and products to perform cross-border payments in an easier and faster way than with SWIFT.
Mr. Leibbrand informed that the trial would see the interaction of the SWIFT payments standard framework called Global Payments Innovation (GPI) with the financial platform developed by R3. It will be possible for clients to initiate a payment on the trading platform going into GPI, comented Leibbrandt during a conversation with CNBC.
This announcement made by SWIFT is very important because it is related to speculation about the company embracing blockchain technology to improve the services that it offers and its system. Back in November 2018, rumours spread regarding a partnership with Ripple Labs. However, this turned out not to be real.
Brad Garlinghouse has also commented in the past that their intention at Ripple is to surpass SWIFT and compete with them. R3’s Corda Settler is currently using XRP tokens in order to settle transactions around the world between financial companies. At the moment, the SWIFT network is currently working with 11,000 financial institutions.
Ripple CEO believes that SWIFT is a slow and expensive payment network and that decentralization was a better alternative to centralized payment networks.
Libbrandt told CNBC:
“I think that the big part of Ripple’s value proposition is the cryptocurrency XRP. There we do find the banks are hesitant to convert things into a cryptocurrency right now because of the volatility in the currencies.”
In the near future, SWIFT could be using the XRP token to perform transactions using the R3 network. Nevertheless, in the future, it might be possible to see the implementation of a stablecoin instead of XRP on the R3 platform.
In the last 24 hours, XRP has increased its valye around 11.47%. Each XRP token can now be purchased for $0.323 and it has a market capitalization of $13.31 billion. Additionally, several banks and financial institutions could start to use XRP to perform cross-border payments using the xRapid product developed by Ripple Labs.