- XRP offers near-instant settlements (3–5 seconds) and significantly lower transaction costs ($0.0002 compared to SWIFT’s $50), positioning it as a future-ready alternative for global payments.
- XRP’s “secret weapon” lies in its liquidity, freeing up capital tied in dormant accounts under SWIFT.
The XRP community believes that global finance dynamics are changing quickly and that the existing SWIFT system is dying slowly. As adoption of blockchain-based cross-border payments rises, the community is confident that the Ripple cryptocurrency and XRP Ledger are poised to replace SWIFT.
As mentioned previously, there have been several debates over whether XRP can replace SWIFT considering the altcoin’s utility factors, such as low cost and instant global transactions. Popular community handle on X platform “All Things XRP” stated that SWIFT is dying with the ripple cryptocurrency poised to replace it moving forward. The member noted:
SWIFT’s downfall is inevitable. It’s slow, expensive, and outdated. Meanwhile, XRP and the XRPL are faster, cheaper, and built for the future. Adoption is coming—it’s just a matter of when, not if.
Here’s Why SWIFT Will Lose Market To XRP
“All Things XRP” stated key reasons why the SWIFT system is likely to lose market share to XRP in the coming years. It compares the existing SWIFT system to a “dinosaur,” highlighting its reliance on a network of intermediaries that requires manual settlement by traditional financial institutions, including banks.
On the other hand, XRP operates in a completely decentralized environment and serves as a bridge between fiat assets. As a result, it can facilitate near-instant settlements without intermediary support. Furthermore, while SWIFT takes up to five days for cross-border transactions, XRP completes settlements in just 3–5 seconds. The report also noted that XRP eliminates delays in sending money, describing its capability to move value “at the speed of the internet.”
Another important factor, transaction costs, shows that XRP once again outperforms SWIFT in this domain. While the SWIFT banking system can charge around $50 per transaction, XRP’s fee is a mere $0.0002. Thus, XRP offers a major cost advantage over the current system coupled with faster settlement times, making it a more effective alternative.
Furthermore, the community handle notes that SWIFT’s centralized model is vulnerable to attacks citing the $81 million Bangladesh Bank hack back in 2016. On the contrary, XRP is completely decentralized, secure, and battle-tested, it notes.
Liquidity and Adoption Key Factors That Make Ripple Crypto Attractive
All Things XRP also noted that the Ripple altcoin’s “secret weapon” is its liquidity, emphasizing its ability to unlock capital typically tied up in dormant accounts under the SWIFT system. This liquidity allows for near-instant and highly efficient transactions using the Ripple cryptocurrency.
While acknowledging SWIFT’s dominance in the financial sector with its extensive network of over 11,000 financial institutions, the post suggested that the XRP ecosystem is rapidly gaining ground. Ripple’s RippleNet was highlighted as a key driver of this growth, with more than 300 banking partners already on board, reflecting increasing adoption of the technology by financial institutions.
The post by “All Things XRP” criticized SWIFT for operating under a complex, multi-layered bureaucracy. In contrast, it highlighted XRP’s potential for widespread adoption, particularly as the resolution of the SEC lawsuit against Ripple draws closer, as we discussed earlier.
