Ripple Sets Sights On Swift Banking Network
Blockchain company Ripple is currently looking ahead at technology that will provide its customers with a faster and better system and one contender is Swift Banking Network.
“SWIFT” stands for “Society for Worldwide Interbank Financial Telecommunication,” while IBAN represents “International Bank Account Number.” Bank regularly use both to transfer and receive funds. The unique factor concerning blockchain technology is that it can eliminate the need to use such systems – rather, funds are transferred digitally without routing numbers. The ease-of-use of Ripple and other like-system have caused them to gain in popularity.
The disadvantage to such digital products though is that there is always the risk that they will be used for money laundering. The Financial Action Task Force, responsible for promoting anti-money laundering efforts worldwide, has been working to prevent criminals from misusing digital technology. As a result, such technology has received a great deal of scrutiny.
Garlinghouse solidified his position concerning Swift technology, stating:
“The technologies that banks use today that Swift developed decades ago hasn’t really evolved or kept up with the market. Swift said not long ago that they didn’t see blockchain as a solution to correspondent banking. We’ve got well over 100 of their customers saying they disagree.”
Right now, there are over 100 banks and payment providers on the RippleNet network. A few platforms on the network include Mitsubishi UFJ Financial Group and Standard Chartered PLC.
“What we’re doing and executing on a day-by-day basis is, in fact, taking over Swift.”