Will Ripple replace Swift?
Swift was so far the fastest way to transfer funds from one country to another.
But this fastest way has been extremely slow, and a typical banking transaction takes about two days today, when it can take about four days for ACHs.
American Express will use Ripple's services
That’s why American Express launched the possibility of making one-click transactions thanks to Ripple, to transfer money from the United Kingdom to the United States.
Ripple’s Account Manager Marcus Treacher says Ripple is not only a quick way to transfer funds, but also a lot safer than with Swift.
Treacher knows what he’s talking about because he was a member of Swift’s board of directors.
He stated : “Whereas previously Amex had to send Swift messages to banks to request payment, Amex is now connected directly to banks using Ripple’s cryptography, so that the cash flow occurs immediately. “
American Express therefore transfers the dollar funds of US customers to accounts of the Santander bank in the United Kingdom in Pound, using the Ripple channel.
Amex had earlier joined the Blockchain Hyper Ledger consortium and partnered with the Bitcoin Abra application provider.
Ripple is growing
When it comes to Ripple, this new customer reinforces his work of free circulation of funds via his blockchain platform.
Ripple already connects Europe to the United States through its partnership with the Swedish bank SEB, which counts it, connecting Sweden to New York thanks to Ripple.
For the moment Ripple is limited to a Blockchain called “pure”, that is to say which does not pass by a cryptocurrency. But Ripple is already partnering with financial services firm Cuallix, which converts money transfers into XRP tokens.
Swift, Ripple’s direct competitor, is building his own Blockchain using Hyper Ledger, but using Ripple’s cryptocurrency.
Treacher concludes: “Where these two things come together is that banks and bank users, like American Express, adopt Ripple and start to connect, XRP becomes an option they can use for liquidity purposes,”
“And that’s where it really comes to life.”
Today Ripple has increased by 19%.