Ripple update: ELI5 Why Do Banks Need Crypto (XRP) For Fast Transfer?
so i’m aware that the mission is to bring XRapid to replace SWIFT’s technology in the banks, but why do banks actually need a cryptocurrency as a bridge? Why can’t they just use SWIFT’s cloud technology which (technically) has bigger potential to achieve greater speed, considering it will be much more centralized. I read the article here, which is very good: [https://www.ft.com/content/631af8cc-47cc-11e8-8c77-ff51caedcde6](https://www.ft.com/content/631af8cc-47cc-11e8-8c77-ff51caedcde6)
Harry Newman got it right.
“It is no secret that correspondent banking is a 1998 model and we are busy addressing that, bringing it to a 2018 model,” says Harry Newman, head of banking at Swift. “But in terms of speed, what problems are you trying to fix? We have our own cloud and API solutions and are already doing payments in minutes or even seconds.”
So if banks can transfer money from bank to bank within seconds using Swift’s new technology, why do the banks want to ‘risk’ it by moving to DLT technology without any benefit? i mean, they like centralized power, right?
About Ripple (XRP)
Ripple connects banks, payment providers and digital asset exchanges via RippleNet to provide one frictionless experience to send money globally. Banks and payment providers can use the digital asset XRP to further reduce their costs and access new markets. XRP is the fastest and most scalable digital asset today.
Author: wokad
Score: 25
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