Cory Johnson, the Chief Market Strategist for Ripple, recently appeared on a webinar to speak about XRP and its use-case in disrupting cross-border payments. He also offered his opinions on the existing system SWIFT, also known as the Society for Worldwide Interbank Financial Telecommunication. Cory also elaborated upon his feelings towards rival blockchains..
He began by talking about XRP’s strengths, stating that those lay within technologically recording value and “moving it across borders”. These are moving through a digital distance while being a digital representation of money which utilizes blockchain.
According to Johnson, the blockchain ensures that XRP’s transactions are real and to ensure maximum security. He further stated:
“The World Bank said that the average cost of remittance was an all-time historical or low for humanity at 6.94%. The average business has a net profit margin of about 7% but the cost of moving money across borders is about 7%. That means the average business has no business in being global.”
Moreover, the existing system also has an error rate of 6% in its transactions, stated Johnson, likening it to losing power one hour in a day. The 700 basis point cost that comes with the system and the three to five days it takes for a transaction does not fit with the era we live in, he said.
This is the latest in a series of statements made by Ripple’s executives regarding the incumbent system, which is currently undergoing an overhaul. The makeover, known as SWIFT Global Payments Initiative, is set to cut costs and increase speeds in an attempt to stay relevant.
Brad Garlinghouse, the CEO of Ripple, has likened the upgrade to putting a Ferrari shell on a Ford Model-T, stating:
“Swift GPI is like putting a Ferrari shell on a Model-T engine. It’s a cosmetic upgrade on old infrastructure: messaging is still not tied to settlement, it’s unidirectional and can’t solve for liquidity.”
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Ripple: SCB Thailand asks crypto-enthusiasts to wait for announcement regarding XRP adoption
The nascent field of cryptocurrencies has been seeking major mainstream adoption, especially from financial institutions. Ripple, the native company of the third largest cryptocurrency, managed to promote its services and would provide payment services to the oldest Thai bank, Siam Commercial Bank [SCB].
The bank however, has not confirmed whether it would be making use of XRP. The Bank had informed its approach towards blockchain technology in various industries and the XRP community rejoiced after rumours of XRP adoption surfaced. However, when a Twitter user asked about the bank using XRP, SCB replied,
“We will be using Blockchain Technology for ripple but as for XRP, you may have to wait for further announcement.”
However, another Twitter user, @_bjb, jumped the gun when he saw the following on SCB,
SCB transfers via Ripple. And with that we have mainstream adoption in Thailand. pic.twitter.com/n9QRt5Uq7X
— ₿ryan (@_bjb) May 18, 2019
The user then shared that when he went to use the service, he was informed that the service will be available soon. SCB Thailand apologized for the inconvenience through a tweet and informed all users,
“The information about ripple transfer will be announced soon, we are sorry for the inconvenience.”
The bank also stated that at the moment, it was using Ria Ripple transfer for banks in Japan and that users and crypto-enthusiasts will have to wait for an official announcement.
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