Can Ripple (XRP) replace SWIFT as the new global payment system?

Amelie, an influential crypto commentator, shared on X a report from Forbes mentioning Ripple (XRP) as a possible alternative to traditional payment systems such as SWIFT. She suggests that Forbes is hinting at a future where XRP could replace SWIFT.

Ripple versus SWIFT

SWIFT, long the standard for international payments, has come under fire for high costs and slow processing times. Since its founding in 2012, Ripple has offered a platform for fast and cheap international transactions, specifically aimed at banks and financial institutions seeking more efficient solutions. In her post on X, Amelie highlights the benefits of Ripple for international payments.

While Ripple seems like an attractive choice on paper compared to SWIFT, there are still obstacles to widespread adoption of XRP as a SWIFT alternative. A major challenge is the legal battle between Ripple and the US Securities and Exchange Commission (SEC). This lengthy lawsuit has significantly slowed the adoption and growth of XRP in the United States. With a new appeal from the SEC, the case could potentially drag on until 2025.

Ripple continues to grow despite legal challenges

Despite these obstacles, several financial institutions are already integrating Ripple’s technology to make cross-border payments faster and cheaper. Ripple is also expanding its ecosystem with applications for stablecoins. In addition, there are rumors that the BRICS countries are considering XRP as a SWIFT alternative, which could further increase the influence of Ripple’s technology, although the reliability of these rumors is unclear.

If the legal and structural barriers can be overcome, XRP could play a prominent role as a fast, cheap and secure solution for international payments. Ripple’s ambition to play a central role in the global financial system seems closer than ever. The future will show whether Ripple can become the financial giant it has aspired to be for years.