Ripple's XRP Outpaces SWIFT With 99.99994% Lower Fees, Instant Settlements

Ripple's CEO, Brad Garlinghouse, has been vocal about the need for SWIFT to update its system, as it does not meet the demands of the digital economy. SWIFT transactions are known to take several days to settle and incur substantial fees, along with unknown expenses, making the system frustrating for users, including businesses and consumers.

In contrast, the XRP and Interledger Protocol (ILP) system enables instant transactions at a very low cost, facilitating faster and more accessible cross-border payments. This has garnered interest from many financial institutions, including banks and fintech companies, which are exploring blockchain solutions that could potentially replace SWIFT as the leading global payment system. The battle for the new standard in worldwide payments is ongoing, with XRP and ILP vying to become the leading option.

XRP payments offer several advantages over traditional SWIFT transactions. They are faster, with processing times of only a few seconds compared to SWIFT's 1 to 5 days. Additionally, XRP payments are more cost-effective and provide enhanced transparency and flexibility. For instance, Michael Arrington from Arrington Capital used XRP to send $50 million, which was processed in just three seconds for a fee of $0.30. This speed and cost efficiency make XRP payments a strong contender for revolutionizing border-crossing money transfers, according to many experts.

The global impact of XRP adoption is significant. Financial institutions worldwide, including the Bank of England, have explored Ripple’s ILP technology due to its potential to transform international financial operations. Real-time settlements eliminate waiting periods during cross-border payments, while a decentralized infrastructure reduces dependency on centralized banking intermediaries. Lower costs increase the accessibility of global trade and remittances. As institutions seek efficient payment solutions, the adoption of XRP is expected to rise in the coming years, potentially leading to the replacement of outdated systems like SWIFT.

X Finance Bull concludes that XRP, along with ILP, is developing a financial system that outperforms SWIFT by being faster, cheaper, and more accessible. The outdated nature and inefficiency of SWIFT have been acknowledged by Ripple’s CEO, Brad Garlinghouse, and many financial experts predict that blockchain-based payments will soon replace traditional systems. The increasing use of XRP by institutions, along with growing institutional adoption, has sparked discussions about whether XRP and blockchain technology might replace SWIFT as the standard system for international transactions.