Quick overview

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Vincent Van Code, a popular software developer and strong advocate for blockchain adoption, made a claim that caused a lot of debate among the XRP community.

Van Code hinted that SWIFT might soon declare its plan to employ XRP and Ripple as an alternate settlement layer for interbank payments. This potential action could significantly change the global financial scene.

 

SWIFT and Ripple have been viewed as rivals in the effort to modernize cross-border payments for many years. For interbank communication, SWIFT has been the industry standard thanks to its vast network of more than 11,000 member institutions.

RippleNet and On-Demand Liquidity (ODL) have introduced a real-time, blockchain-based solution. According to Van Code’s comments, this dynamic may change, and SWIFT may decide to cooperate rather than compete.

Ripple can facilitate real-time, cross-border payments, which is its value proposition. It is very appealing to financial institutions trying to boost capital efficiency and lower operational friction because the ODL solution does away with the need for expensive nostro/vostro accounts.

The current global payments infrastructure has numerous inefficiencies that could be resolved by a SWIFT-Ripple alignment, especially one that incorporates XRP

For the first time, a legacy financial consortium would publicly accept a decentralized digital asset for use in common settlements, which would also be a historic moment.

SWIFT has shown signs of being open to blockchain integration, even though it has not confirmed any such action. In 2022, SWIFT started utilizing Chainlink to test blockchain interoperability. Conversations with SWIFT and its expanding network of partnerships, including those with central banks, have also been acknowledged by Ripple in the past.