Earlier in the week, Brad Garlinghouse, the Chief Executive Officer of Ripple Labs Inc., the blockchain start-up whose digital money is frequently utilized as a proxy for other cryptocurrency payments, announced that the platform is gaining new customers as more and more financial firms are on the hunt for faster, more up-to-date technology in comparison to the Swift banking network.
For the purpose of sending money, traditionally, banks, businesses as well as individuals have been using The Swift, an acronym for the Society for Worldwide Interbank Financial Telecommunication, and IBAN (International Bank Account Number) systems.
However, with the introduction of Blockchain technology, it eliminates the need for a central standardized system given that it works as a public ledger, thus enabling the digital transfer of money without the need to route it through accounts at financial institutions and banks.
Over the course of time Ripple (XRP), Bitcoin (BTC) and other cryptocurrencies have gone on to gain a lot of popularity, however, they have yet to unseat the standards embraced by the financial industry for wire transfers.
As per published on Swift’s official website, it shows that the Brussels based company has well over 11,000 customers in 200 countries and territories.
As per reports, back in the previous month the Financial Action Task Force, a global anti-money laundering body, requested for a coordinated effort among world governments in order to regulate digital assets to prevent their misuse by terrorists and criminals. It is quite a known fact that throughout the year the cryptocurrency industry has had to tackle various high-profile exchange hacks and increased global regulatory scrutiny leading to a lack of wider mainstream adoption among institutional investors.
Speaking in an interview with Bloomberg at the sidelines of an event in Singapore, Brad Garlinghouse said,
“The technologies that banks use today that Swift developed decades ago really hasn’t evolved or kept up with the market.”
The CEO of Swift further added, “Swift said not that long ago they didn’t see blockchain as a solution to correspondent banking. We’ve got well over 100 of their customers saying they disagree.”
Garlinghouse concluded by saying, “What we’re doing and executing on a day-by-day basis is, in fact, taking over Swift.”