SWIFT's New Blockchain Payment Solution Passes Key Milestone. Here's Why That's Bearish for XRP
SWIFT's rapid blockchain development could be an XRP killer.
Overview
Just over a year ago, Ripple CEO Brad Garlinghouse said XRP (CRYPTO: XRP) could take 14% of SWIFT's volume by 2030. That was ambitious when he said it, but today it seems almost impossible. XRP payment volumes are trending downwards, and SWIFT -- the international banking network that underpins the majority of international transfers through a secure messaging system -- is proving it can integrate blockchain solutions.
Image source: Getty Images.
The big advantage of blockchain transactions is that they are faster and cost less than traditional finance. Ripple's XRP was designed as a bridge asset, a common currency to settle cross-border payments, and its appeal was that it could compete with SWIFT by slashing costs and settlement times. SWIFT processes the equivalent of the world's GDP roughly every three days, and taking even a small fraction of that could have been monumental for XRP.
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Originally published at www.fool.com.