- Ripple Labs is facing a number of challenges including a few detractors, according to a recent report
- Fintech and cryptocurrency experts doubt that Ripple will replace SWIFT
- Transactions through SWIFT slower than through Ripple’s own services
The co-creator of San Francisco’s Ripple David Schwartz says that the company is facing a number of challenges and it involves detractors from the cryptoverse. According to a report by Forbes Middle East, the capability of Ripple’s technology is being questioned by experts from the cryptocurrency world because it is “not controlled by a single authority”. To add to this, several experts from the industry say that Ripple will not replace SWIFT, at least not yet. However, Schwartz is convinced that Ripple’s technology will be able to replace SWIFT despite the fact that other blockchain-based platforms such as Stellar are trying to do the same.
One of the biggest problems that Ripple faces is SWIFT’s 45-year history and its strong relationship with many of the world’s banks, according to Danish Yasin, an industry expert. Yasin adds that banks are hesitant to use Ripple’s XRP because of its volatility. In January 2018, the company lost an estimated 50% of what it gained the year before. While the company will not be taking over the global financial system just yet, Ripple is reportedly “fine” with it.
In an interview with Forbes’ Michael del Castillo, Schwartz said that the American fintech wants to “create a payment network like SWIFT”. He added that the system will be different from the current messaging system because settlement will be faster. “The endgame”, according to the Ripple executive, “is just moving money invisibly, as easily as information.” International money transfers through Ripple’s platform are efficient and cost-effective, while doing the same transaction through SWIFT takes three days before the money appears in the accounts of recipients. SWIFT also requires a number of papers be signed by senders.
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