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For anyone familiar with the world of remittances, the services of Ripple (XRP) and SWIFT are the same, despite the fact that the former is based on blockchain technology. Although there was an expectation of partnership between the two companies, there were several statements in the FinTech space that Ripple's block technology is undoubtedly a threat to SWIFT.
Today, according to an announcement, it was revealed that SWIFT's managing director, Gottfried Leibbrandt, would resign as head of the company's key piece next year.
Known to offer cross-border payment services, the Global Interbank Telecommunications Company (SWIFT) has been led by Leibbrandt for 7 years.
Leibbrandt led the company through the thick and thin, through a series of crises ranging from sanctions to Iranian banks, hacking and threats from blockchain technology in particular from the Ripple network (XRP).
Is SWIFT really threatening Ripple (XRP)?
Prior to the advent of SWIFT, Telex was the primary means of transmitting and confirming information on financial transactions worldwide. Because of the low security and speed of Telex, people have opted for SWIFT because the former does not have a unified system of codes like this one.
Senders must also describe each transaction in sentences that the receiver can interpret and execute, and this has led to a series of human errors.
Despite the fact that SWIFT came to their rescue, they soon discovered that it had faults. Not too long, especially with the advent of blockchain technologies like Ripple (XRP), users have discovered that speed and network security are not desirable.
While the Ripple network takes only a few seconds to execute cross-border transactions, SWIFT offers a rudiment method that takes days to complete the transaction.
Likewise, Ripple's blockchain technology provides a system that allows transaction tracking from the sender to the receiver to ensure transaction security, while SWIFT is trackless.
Finally, while it is almost impossible to hack the Ripple network in cross-border remittances and no such reporting was issued, SWIFT in February 2016 witnessed a computer theft in which $ 81 million was taken away by sending false instructions via SWIFT to the Federal Reserve Bank of New York.
As such, many have claimed that the Ripple network (XRP) and other similar blockchain technologies offer a faster, cheaper and safer remittance corridor when compared to SWIFT.
Of course, there is no more news that hundreds of banks and other financial institutions have collaborated with Ripple for the cross-border repatriation service so as not to be excluded from the latest evolution of the FinTech sector. Therefore, it is clear that Ripple is gradually taking some SWIFT customers.
To top it all off, the head of Ripple Labs Inc. has provoked SWIFT, stating that XRP is gradually taking over.
The threat of Any Connection Between Ripple (XRP) to SWIFT and CEO Stepdown?
While SWIFT seems to feel the pressure of Ripple (XRP), the organization, under the protection of Gottfried Leibbrandt implored the banks to install controls that limited access to their network, in order to offer a safe and more traceable of remittance funds.
Leibbrandt also put other measures to make the company still relevant. The CEO has hired hundreds of developers to improve the services of the company. Leibbrandt has recruited established technologies as protocols to help improve the work of developers from different institutions.
Although SWIFT, in 2017, released a product that allows member banks to track payments without interruption, offering the complete remittance of half of the fund transferred within 30 minutes, the network is not yet compatible with Ripple's blockchain technology (XRP ).
Similar to this, Leibbrandt, in a statement declaring his resignation, said: "Swift is in a very different form than seven years ago."
"There will always be a time to deliver the reins and write a new chapter, I think it's really the right time," he added.
Many pointed to the statement that the pressure of Ripple (XRP) could have forced the CEO's resignation, since all efforts made to match the blockchain technology remain in vain.
Information on SWIFT
SWIFT is considered a business that offers a network that allows financial institutions around the world to transfer and receive information on financial transactions in a secure, standardized and reliable environment.
About Gottfried Leibbrandt
SWIFT has proposed to Gottfried Leibbrandt to collaborate on the development of the SWIFT2010 strategy. Subsequently, he was appointed Head of Standards and, subsequently, responsible for marketing in 2007.
He also played an important role in the SWIFT2015 strategy. Prior to joining SWIFT, Leibbrandt was at McKinsey & Company for 18 years.
