Recent comments from SWIFT's Chief Innovation Officer Tom Zschach have raised questions about the viability of XRP and Ripple as tools for settlements in the banking sector.
Questions About XRP from SWIFT
Tom Zschach expressed doubts regarding XRP and Ripple as settlement tools for banks, stating that the lack of regulation and trust in XRP might lead banks to prefer tokenized assets under their control. Ripple has not commented in response.
Market Impact of XRP
Zschach's remarks led to a 2.02% drop in XRP's price, reflecting normal market volatility. Analysts are closely examining the ongoing debate and its implications beyond short-term changes.
Future of XRP and Traditional Finance
Experts are discussing XRP’s ability to maintain relevance amid stablecoins and regulated digital assets. Zschach remarked, 'If tokenized deposits and regulated stablecoins scale, why would banks pay a toll to an external asset when they can settle directly in instruments they already control and trust?'
SWIFT raises important questions about XRP's future in traditional financial systems, emphasizing the need to analyze regulated assets in the context of future settlements.
