Cryptocurrencies and blockchain are set to disrupt much of the financial system. Banks and remittance companies are in for a severe shakeup and are already beginning to feel the change, and some say the SWIFT system will also be replaced by a cryptocurrency.
To prepare, the legacy financial system is partnering up with crypto companies as they look to migrate to a tokenized and automated financial system that cryptocurrencies will initiate. But are the blockchain networks being created an ideal platform for what will be the biggest of all industry disruptions.
Which cryptocurrencies might replace the SWIFT system?
Ripple (XRP), the third biggest cryptocurrency by market cap, is regularly touted as being a cryptocurrency for banks and cross-border payment transfers.
RippleNet, Ripple’s worldwide payments network, is growing rapidly as more financial giants partner up. Already, RippleNet has a diverse network of over 300 financial institutions from all corners of the globe. It’s acknowledged that they’ll use Ripple’s XRP for payments transfers, which will help them facilitate secure and almost instantaneous transactions at minimal costs.
The benefits don’t end there. When financial institutions switch to XRP, they’ll no longer have to store money in multiple foreign accounts around the world. Instead, they can store their resources securely and locally, which will ensure more control for the institution and ultimately slice their overheads. Read More