SWIFT and Ripple Are Not Partnering. They Are Actively Competing Against Each Other
Many users in the crypto community, especially those who are part of the XRP Army, have debated a lot over the last few months about a possible partnership between Ripple and SWIFT. Given the long history of consistent achievements revealed by Ripple in social networks, press releases and events, many consider it a “natural” step in the evolution of the world of finance.
Previously, in an article published on October 20th, 2018; we analyzed this possibility, mentioning that we saw it unlikely that such “dream” come true, or that it would not materialize in a short or medium term.
Recently, however, the doubts were dispelled by the actions of both companies. They did not have to explicitly deny the rumors for the world to understand that both firms are working to provide solutions that compete with each other.
In an article published on SWIFT’s official website a few weeks ago, the firm shared that the development of a system based on the use of Blockchain technologies is in a state of constant advance. The SWIFT GPI system proactively processes interbank payments frictionlessly, inexpensively and quickly.
Christof Hofmann MD and Global Head of Payments and Collection Products, Deutsche Bank, Germany, said:
We believe the gpi pre-validation service will add significant value to our clients, increasing the overall gpi client experience. Beneficiary account validation addresses an important pain-point in cross-border payments; it will help increase STP ratios while reducing fraud and exception handling.
SWIFT is using Hyperledger technology to develop its own blockchain-based solution. Thus, a partnership with Ripple is seen as unnecessary for the financial services giant.
SWIFT says “No” to a Partnership
Also in November 8th, 2018 ; a spokesperson at SWIFT confirmed that although the company was working with blockchain technologies, Ripple was not part of such efforts:
I’m not sure where those rumors are coming from but the upcoming standards release … is entirely unrelated to RippleNet. Its primary purpose is to ensure all payments include a tracking reference (UETR, Unique End-to-end Transaction Reference) which will allow banks to track their GPI payments end-to-end in real time.
Ripple Also Says “No”
Cory Johnson also clarified the rumors, commenting that Ripple intends to offer a product that competes with SWIFT and eventually replaces it. Steven Diep revealed this in a tweet showing an excerpt from an interview with Ripple’s chief market strategist at the end of last year.
Ripple is meant to be a replacement for SWIFT … XRP is meant to be a digital way to move value … Right now all of our customers are still using SWIFT ad they’re using Ripple’s products, so I don’t know if there is anyone that’s 100% on us, but I would expect we will have customers that are only using Ripple’s product, but you know, some people like the way the world is
– Ripple is meant to replace SWIFT – XRP is meant to be a digital way to move value – All of Ripple's customers are using both Ripple and SWIFT