Ripple and SWIFT have very different models and they would not need to partner. This is according to Ripple’s Head of Strategic Accounts Marcus Treacher who went on to say that there can only be two outcomes in the Ripple vs. SWIFT battle; the first is that they will both coexist with Ripple processing the time-sensitive transactions while SWIFT processes the rest and the second is that Ripple becomes so widely used that SWIFT is gradually phased out of the market.
Speaking about Ripple’s significant uptake in regions such as India, Brazil and Latin America, Marcus attributed it to Ripple’s ability to serve the underserved and marginalized.
“Ripple as an innovation is adopted more quickly where the pain is greatest, so we see a lot of take-up in economies which are less efficient. Strategically, these are good markets to work on as they are still growing.”
Marcus also sought to clarify on how much Ripple’s operations would be affected by what happens to the value of XRP. Ripple operates in two stages, the first being its payment platforms that work with or without XRP. The second is through XRP whose use it seeks to drive for its ability to scale, its speed and its effectiveness in reduction of capital required for cross-border transfers. However, Ripple would still function effectively in its role as a payment solutions provider even if XRP’s value fell to zero.
“As such, the value of XRP is secondary to its role as a liquidity solution. Its purpose is to be a pasture, meaning that banks and corporates don’t have to store liquidity in un-strategic currencies. Because of this, the value of XRP is not important to the Ripple model.”
Marcus will be speaking on May 16th at the TFX Trade and Treasury conference which will be held in the Netherlands alongside other payment industry leaders including Bank of America’s head of product management, Peter Jameson and Louis De Bruin, IBM’s blockchain head for Europe.
You may also like: SWIFT Thefts and How Ripple Can Help