Ripple Network
300 Banks & Financial Institutions, and climbing.
Does the RippleNet solve today's Cross-Border issues? Absolutely. The majority already know what Ripple is trying to accomplish here, most of this information is already well known. I'll quickly elaborate on a few points in relation to SWIFT's GPI settlement claims.
- We have Inefficiencies and cost associated with the management and maintenance of many bilateral relationships. RippleNet solves this age old problem.
- Ripple's settlement solution uses bidirectional messaging to dynamically exchange payment information, fees, rates, and status tracking information.
- Interledger Protocol (ILP) is designed to provide interoperability & scalability across banks and none-banks at the necessary scale to process the transaction volume expected.
- Ripple enables efficient Liquidity management, allowing banks to source liquidity from the marketplace by third party liquidity providers and have the option to utilize XRP as a bridge asset to send cross-border payments.
- RippleNet is decentralized with a growing number of nodes.
- The digital currency, XRP is a mediator for both cryptocurrencies and fiat-exchanges.
These were just a few points before I write about the settlement claims by SWIFT.
SWIFT Network
11,000 Banks & Financial Institutions and is approx: 40 Years old.
Does Swift GPI actually perform 13 or 25 Second Settlements? Can they achieve such a thing by an antiquated system that has been bandaged up with this GPI?
Based on the data provided, they still cannot solve today's cross-border issues.
Settlements do not happen in 13 or 25 seconds.
The entire SWIFT GPI process happens before hand where Banks & Financial Institutions are still required to send funds to the corresponding banks.
This money sits in the corresponding bank account (example: Nostro accounts) for days, waiting for authorization.
The 13 or 25 seconds claim is a Payment Authorization, not actual settlement. But it seems SWIFT sugar coats it for those that do not fully understand how this system actually works. Ripple's Network is miles ahead of SWIFT's GPI.
- To further break this down, Banks & FI's are still forced to part with there funds to utilize the Swift GPI as they've done for about 40 years now. What has this solved? Nothing in my opinion.
- SWIFT's core messaging protocol still flows in one direction, creating opacity, additional costs, delays and risks at every stop.
- SWIFT is a closed interbank network and the usage of a private blockchain means that there will be a global transaction limit.
- SWIFT requires banks to use their own liquidity in fiat currency.
- SWIFT GPI is centralized and has no digital or crypto-currency.
