Ripple News Today – September 26, 2019

Fibo Quantum

  • Ripple Chief Says Swift’s Real-time Payments Solution Cant Tackle the $10tn Liquidity Issue
  • Can Ripple Tackle Liquidity Problems? 

Even though Swift’s real-time payments solution is a welcome development, it still doesn’t tackle the issue of banks having trillions of USD tied in pre-paid Nostro accounts globally. This what Navin Gupta, who serves as an MD at Ripple for Southeast Asia and Mena believes.

Gupta Claims Swift Lacks the Fundamentals to Tackle the Liquidity Problem

It is no secret that Swift’s capacity to innovate has been debated for several years. The network is bank-owned and is the system most banks depend on for cross-border transactions. However, Swift’s challenge is that its offering is just a messaging model. Meaning that bank users can depend on it for payment orders. However, when it comes to funds transfer, this is done via a pre-funded Nostro account.

Swift has been working to improve its offering in recent months. One way in which the network has innovated its offering is by launching its GPI (global payment innovation) service. GPI reportedly guarantees payments are received in 24 hours. Swift’s GPI also launches real-time payments via domestic payment networks.

However, Gupta of Ripple has argued, that Swift’s improvements do not necessarily change or improve the correspondent banking system. Something he referred to as the liquidity problem.

Ripple’s xRapid, uses cryptocurrency (XRP) to give banks the ability to source on-demand liquidity abroad. Meaning that banks don’t need to have correspondent relations. They do not need to hold funds in Nostro accounts. The xRapid product uses XRP, as a ‘bridge’ between fiat money. Ripple’s xRapid is currently used by 20 financial institutions.

Wars Over Who Has the Better Offering Isn’t New

It isn’t uncommon for Ripple to openly criticize Swift. After all, Swift is Ripple’s biggest rival. August last year, Emi Yoshikawa, Ripple’s director of joint venture partnership, declared that Swift’s GPI is “a marginal improvement” on “the networks old architecture.”

XRP (XRP) Price Today – XRP / USD

In recent times, Ripple has been more diplomatic towards its direct rival, Swift. Recently, Marjan Delatinne, Ripple’s head of global banking said Swift and Ripple are not competitors. Rather he believes both networks “can complement each other.” Delatinne previously worked with Swift.

When Gupta was asked by GTR about what prompted Ripple to alter its approach and partake in Sibos (an exhibition stand), the Ripple chief declined to comment. Recall that Ripple had opted to participate in Sibos. But Gupta said the networks change of approach isn’t the subject for the day.

Ufuoma Ogono is a cryptocurrency writer with over 3 years experience in the cryptocurrency industry. She dedicates her time to sharing valuable information to members of the cryptocurrency community.