In the XRP community, discussions frequently arise regarding the differences between Ripple and SWIFT. Vincent Van Code shared his insights on these two systems, highlighting key distinctions and Ripple's potential advantages.
The Role of SWIFT in International Payments
Van Code argues that SWIFT is not a payment system but rather a secure messaging network that informs banks how to settle transactions using their own correspondent banking relationships. The real bottlenecks arise not from the software itself but from how nostro and vostro accounts are managed across multiple institutions.
Benefits of Ripple
Ripple, in contrast to SWIFT, eliminates the middlemen, allowing the sender to instantly convert and send funds via the XRP Ledger in mere seconds. The receiving bank can then credit the funds to the account almost immediately, drastically reducing transfer time.
Future Prospects for Ripple
According to Van Code, while the technology holds promise, the real challenge lies in creating a compliant framework that allows global banks and regulators to adopt these new methods. He compared Ripple's mission to other technological innovations such as SpaceX rockets and self-driving cars.
Van Code emphasizes that Ripple is not merely competing with SWIFT; it aims to transform the way international finance operates. This ambitious task requires time and effort. While SWIFT currently dominates, Ripple has the potential for significant changes in the future.
