Recently, SWIFT published a report titled, Payments in Africa: Insights on the flow of African transactions. In this report, SWIFT has something to do with Mojaloop. The report states that the SWIFT team at the Bill & Melinda Gates foundation has played a role in developing a switch that verifies, manages and manages settlements between different operators, including mobile money providers, banks and traders.
is that Mojaloop is also working with ripple, in an attempt to improve interoperability in the African market. Basically, the two technologies are working together on this project that will lift millions of Africans out of poverty. Even if this is just a single project, it highlights the common goals of the two platforms and how they can benefit each other, when they work together, instead of competing with each other.
Most XRP investors (XRP) believe that ripple will be at some point SWIFT in the banking sector. However, the reality is that they need one from the other. SWIFT needs something, and this is the network and political leverage. Thanks to its market presence lasting decades, SWIFT has established strong links with the financial industry. The banking sector built most of its cross-border payment infrastructure around this platform. Furthermore, SWIFT has a high level of political support, for geopolitical reasons. For the context, a German minister recently asked for the need for Europe to develop independent financial systems from the United States. But, while their chancellor came out to support this, he added that they still have to work with SWIFT as a tool to prevent terrorist financing. This shows that, for geopolitical reasons, it will be a major challenge for banks, especially in the West, to abandon SWIFT and move to a new system.
The best bet would be the cooperation between the two platforms, which is actually quite viable. Ripple has superior technology, while SWIFT has networks. This collaboration would unlock the best of both. And if the success of the Mojaloop project is something to go, then things could go that way in the future. This collaboration would immediately give XRP mass adoption in the banking sector as a tool to improve efficiency. It would unlock the true value of this currency, as demand from financial institutions and retail buyers seeking to take the XRP train would push the price through the roof.