Traditional finance systems, such as SWIFT, are facing challenges as demand for digital, instantaneous solutions grows. Experts and banks like Standard Chartered are considering Ripple technologies as potential alternatives.
Critique of Traditional Systems
Gautam Jain, the global head of digitization at Standard Chartered, raises questions about the reliability of existing payment infrastructure. He pointed out the inefficiencies of the SWIFT system, stating: "We live in a day of instant gratification, why wouldn't you want your money faster?"
Use Cases for Ripple
In partnership with Ripple, Standard Chartered is exploring ways to optimize processes. One such example was the TradeSafe solution to enhance trade efficiency and reduce instances of duplicate invoicing.
Competitive Advantages of Blockchain
Ripple's technology offers advantages that can significantly improve current banking solutions. Unlike SWIFT, Ripple uses blockchain technologies that enable instant transaction completion and full visibility of the transfer process. This is especially critical for international transfers where speed and transparency are vital.
Considering the discussed points, Ripple technologies represent forces that could cleanse the financial system of outdated models and offer more modern, user-focused solutions in international payments.
