Cory Johnson, Ripple's Chief Market Strategist, recently appeared in a webinar to talk about XRP and its use case to stop cross-border payments. He also offered his views on the existing SWIFT system, also known as the global interbank financial telecommunications company. Cory also elaborated his feelings towards rival blockchains ..
He began by talking about the strengths of XRP, stating that they were inside a technological registration value and that "they moved it beyond the borders". These are moving through a digital distance despite being a digital representation of money using blockchain.
According to Johnson, the blockchain ensures that XRP transactions are real and to ensure maximum security. He also stated:
"The World Bank has stated that the average cost of remittances was historical or historical minimum for humanity at 6.94% .The average company has a net profit margin of around 7%, but the cost the transfer of money across borders is around 7%, which means that the average business has no business to be global ".
In addition, the existing system also has a 6% error rate in its transactions, Johnson said, comparing it to losing power an hour in a day. The cost of 700 basis points that comes with the system and the three to five days required for a transaction do not fit the era we live in, he said.
This is the latest in a series of statements made by Ripple executives about the incumbent system, which is currently under review. The remake, known as the SWIFT Global Payments Initiative, is set to reduce costs and increase speed in an attempt to remain relevant.
Brad Garlinghouse, Ripple's CEO, compared the upgrade to a Ferrari projectile on a Ford Model-T, stating:
"Swift GPI is like putting a Ferrari shell on a Model-T engine, it's a cosmetic update on old infrastructures: messaging is not yet tied to liquidation, it's unidirectional and can not solve for liquidity".
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