The much-rumored partnership between ripple and SWIFT is most likely not happening. What is likely to happen is that ripple will take on SWIFT head-on in a battle to dominate the cross-border payments market. In this scenario, ripple has a good chance of winning, if a tweet by Marcus Treacher, the global head of strategic accounts at ripple, is anything to go by. Take a look at his tweet below.
From this tweet, it is clear that SWIFT is probably a few years away from matching the technology that ripple has today. Otherwise, there would be no point in them arguing that “delivering it is still years away.” Ripple has already proven that low-cost instant payments are a reality, and 3 financial institutions are already live with XRapid.
Many more are using XCurrent and it is expected that they will be going live with XRapid by the end of the year. Ripple has already hinted that at least one bank will be going live with XRapid this year. Essentially, this just goes to show that ripple is already delivering what SWIFT believes will take years to deliver.
The implication of this statement at SIBOS where both ripple and SWIFT are in attendance is that banks will most likely take a closer interest in ripplenet. That’s because the big theme for this event is, “re-engineering international payments for a fast, digital age.” Under this theme, banks will be discussing how to make payments faster, and remain competitive in an industry that is under pressure from other FinTech players, as can be seen on this excerpt, taken from the Sibos website.
“Stimulated by technological growth and new entrants, the world of international payments is experiencing considerable pressure for change. Transactions across borders have to be faster and simpler. Platforms to send transactions have to be more open, compliant and secure than ever. Even the market providers themselves are no longer bank dominated, with FinTechs and players from outside of the financial sector creating disruption both good and bad. In this session, we debate how radically strategy must change – or not – to ensure that banks continue to lead in tomorrow’s international payments space.”
Clearly, everything that banks are aiming to achieve from Sibos, ripple can deliver. As such, there is a good possibility that ripple could win a few customers from this event, and add to its growing list of clients. It would not be surprising if some banks announce in the course of this event that they are going live with XRapid.
For XRP (XRP) investors, this is an even bigger reason to be long on this crypto. Once the floodgates of banks joining ripplenet open, things could change drastically. The instant demand created could easily see XRP shoot to double-digit valuations in a very short time. This event actually gives credence to the idea that ripple could close the year as the number one crypto, with a market cap multiple times higher than that of bitcoin (BTC). It’s going to be an interesting few months for XRP investors.