Ripple has concluded its legal battle with the SEC, which could significantly impact the future of XRP and its potential competitiveness in the international arena.
History of SWIFT and Its Shortcomings
SWIFT, founded in 1973, serves as the main tool for international money transfers. Despite its significance, the system faces criticism for being outdated. Transactions can take several days and come with hefty fees. Additionally, the complex network of banking partners complicates transparency and tracking of transfers, leading to delays and failures.
Technological Advantages of Ripple
Ripple, unlike SWIFT, employs blockchain technology, allowing for faster transaction speeds and reduced costs. Ripple CEO Brad Garlinghouse previously stated that their goal is to be an alternative to SWIFT, and the signed partnerships with various financial institutions affirm this approach.
Future of Ripple and Upcoming Challenges
Despite legal clarity, Ripple faces challenges in advancing the adoption of its technologies. Regulatory issues and the need to convince banks to change their existing systems remain key barriers. As Cassie Craddock from Ripple noted, 'scaling to the level of traditional providers requires tackling two key hurdles: usability and regulation.'
Ripple's position as an alternative to SWIFT remains in question. Despite legal clarity and technological advantages, Ripple must overcome existing barriers in the banking system and convince regulators and banks of the viability of adopting new technologies.
