SWIFT Exec Slams XRP’s Bridge Currency Bid, Sparks Clash

SWIFT’s Chief Innovation Officer (CIO) Tom Zschach has recently been vocal about Ripple’s XRP Ledger, roasting the tech giant’s legal victories. In a follow-up LinkedIn post, this SWIFT team member went on to derail the XRP Ledger’s settlement rails.

SWIFT’s CIO Drops Off-Putting Message On XRP Army

Per Zschach’s message, traditional banks are unlikely to adopt Ripple’s native chain, as they would want their own payment rails instead. Naturally, the message received immense backlash from the crypto crowd, with some tech-savvy community members sparing time for a deeper explanation.

The LinkedIn user stated that Ripple’s chain has been laying the rails for XRP’s employment as a bridge currency, making the liquidity spread across both global fiat currencies & stablecoins. Circle’s USDC & Ripple’s own RLUSD can technically run up to the rails, as well as the fresh wave of tokenized Real World Assets (RWAs).

To this Ripple-defending statement, SWIFT’s CIO replied: “this isn’t a deposit, isn’t regulated money, and doesn’t sit on their balance sheet”. Even though XRP Ledger would serve as a settlement layer, SWIFT’s honcho doubts that traditional banks will give up settlement finality to XRP, so reliance on tokenized deposits or internal payment rails are more likely.

On the other hand, Ripple’s strive to be a compliance-first tech company has bore fruit in multiple jurisdictions across the globe, with over 300 banks & payment providers already incorporating Ripple’s XRP Ledger in their business life, the OG altcoin’s trading volumes often surpass $10 billion per day

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People Also Ask:

Why does SWIFT’s executive doubt XRP as a bridge currency? SWIFT’s honcho likely questions XRP’s adoption due to regulatory hurdles and limited bank uptake. However, Ripple’s On-Demand Liquidity (ODL) settles transactions in seconds, unlike SWIFT’s multi-day process, making the altcoin a strong contender.

What makes Ripple a potential SWIFT rival? XRP processes 1,500 transactions per second with fees as low as $0.0002, outpacing SWIFT’s $26–$50 fees. Meanwhile, Ripple’s 300+ bank partnerships push XRP as a real-time liquidity bridge, challenging SWIFT’s legacy system.

How does Ripple aim to capture SWIFT’s market? Ripple targets 14% of the financial conglamorate’s $155 trillion annual volume by 2030, using XRP to eliminate pre-funded accounts. Instead, it enables instant fiat-to-XRP conversions, boosting efficiency for banks and fintechs.

Is SWIFT adapting to blockchain competition? Yes, SWIFT tests blockchain via ISO 20022, even trialing XRP’s Ledger. However, its centralized messaging resists full decentralization, keeping XRP’s edge in speed and cost.

Can XRP overcome SWIFT’s skepticism? Regulatory clarity post-SEC case and partnerships like SBI boost XRP’s credibility. Meanwhile, SWIFT’s slow adoption may cede ground if XRP proves reliable in high-volume corridors.