Ripple insists: XRP safer than SWIFT

Posted 01 November, 2019

The company from San Francisco criticized the interbank system and spoke about the advantages of its own technologies. Ripple conducted a study that concludes that XRP is 10 times safer for making international payments – or as Team Ripple explains, one-tenth as volatile as fiat for cross-border transactions.

Brad Garlinghouse, CEO of the company, believes that the interbank system is so slow that it aggravates the risk of losing money due to the volatility of the exchange rate during the transfer.

“If you multiply 270,000 seconds [just over 3 days] in a low-volatility asset and you compare that to 3 or 4 seconds in a highly volatile asset like XRP, it turns out you are making less volatility risk with an XRP transaction than you are with fiat.” - Garlinghouse explained.

The average international transfer of the Ripple takes around 5 to 7 seconds to pass but the SWIFT is not looking forward to improving their procedure or timing to the clearance of the transfer in this century. 

The head of Ripple added that the probability of loss of capital due to volatility in the transfer of XRP appears only if you hold the asset on the stock exchange for more than several hours. Since the transaction speed with xCurrent is high, the risk of fluctuations during the transfer is negligible, Garlinghouse concluded.

SWIFT is the current standard for international payments. International bank transfer on the SWIFT route takes from 1 to 14 days.

 

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