What does SWIFT partnering with R3 mean for Ripple and XRP?

Announced during the Paris Fintech Forum earlier today, SWIFT CEO Gottfried Liebbrandt stated his company has partnered with R3 that will see SWIFT making use of R3’s Corda platform, but what does all this mean for Ripple and XRP.

Starting at the top, global payment network SWIFT revealed its plans of launching a proof-of-concept of a gateway called GPI Link that will enable blockchain technology firm R3 to link to GPI payments from their own platform. This essentially means that obligations that exist for a Corda user can now be settled using XRP.

CEO of R3, David Rutter commented on their trial with Ripple several months ago:

“The tradition of holding numerous currencies across multiple accounts in different countries is costly and inefficient. This is a legacy issue from a time when the technology did not exist to offer a viable alternative; however, digital assets and distributed ledgers can now enable real-time exchange of currencies between parties anywhere in the world without the need for a third-party intermediary. This prototype paves the way for a major overhaul of how banks process and settle cross border payments.”

David Schwartz, Chief Technology Officer at Ripple explained on Reddit several months ago what something like this would mean for the future of the company. He stated that the primary reason Ripple is working in the payments space is that the current payment technology isn’t good enough to fully realize the benefits of XRP. Now, instead of fighting SWIFT for the development of a more sophisticated network, Ripple will instead be able to dedicate more reources to the execution of their XRP strategy.

Senior Vice President of Global Transaction Banking at CIBC summed up the benefits in a statement, saying, “A more efficient global payment system is all about making payments faster, easier and more transparent for businesses and consumers. Using innovative technology to rethink traditional processes is exactly what’s needed to give businesses everywhere an easier way to send and receive payments, and we are very active in making that a reality for our clients.”

But this news doesn’t only mean good things are coming to Ripple. For SWIFT, with 10,000 banks in its network, to use XRP may be just be what the market needs to get out of the current bear market, and may even pave the way for regulatory clarity that the industry so desperately needs. Additionally, mainstream media will have the opportunity to report on the real-world adoption and legitimacy of blockchain and cryptocurrencies.

All this means that, once the news broke, XRP surged around 9.74% in less than an hour. At the time of writing, XRP is up 9.06% and trading at $0.318.

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Western Union Explore Settlement Project With Ripple

Western Union might be start using the cryptocurrency Ripple in its new pilot program.

The global remittance giant has confirmed that it is currently in discussions with the minds behind the digital currency, Ripple Labs. However, little is known about the details of these discussions. If the program does come to light it could be a memorable moment for Ripple and the whole cryptocurrency industry.

Monica Long, the President of Marketing and Communications at Ripple Labs, didn’t confirm any details regarding the project however, she did say:

“In general, financial institutions and networks use Ripple as a technology that powers real-time settlement in any currency to lower the cost of liquidity and compliance. Ripple was created to enable an Internet of Value in which the world can move can move value as easily as information moves today.”

For a long time now, Ripple Labs has promoted the cryptocurrencies network for payments as a way to advance worldwide payments. Many people speculate that Western Union could use the cryptocurrency as a way to send money much faster and a lot cheaper however, this has yet to be confirmed. According to Bitcoin Magazine, a comment made by Western Unions Director of Global Corporate Communications Kristin Kelly, it does suggest that the business is interested in using cryptocurrency for settlements however they didn’t go into explain their reasoning.


Kelly said:

“We have had preliminary discussions with Ripple regarding a pilot settlement project, but it is too early to discuss details at this time.”
The rumours of the likelihood of a partnership was made by the co-founder and CEO of Ripple Labs, Chris Larsen during his panel at the Milken Institute Global Conference on financial inclusion.

During the panel, Larsen said:

“We’re trying to solve the problem of connecting local banks and financial institutions to the global economy. We have this problem where we have a variety of different networks, whether they are in U.S or Kenya or Europe – they’re NOT connected. You can make a phone call to anyone with a phone number and you can send an email to anybody with an email address, but you can only pay people that are in your payment network. The goal is – how do you get all these things operating together?”

Author: Nathan Bentley
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