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Ripple Positions XRP and RLUSD as a Modern Alternative to SWIFT's Legacy Payment System

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Ripple is actively challenging the traditional global payment infrastructure, particularly the Society for Worldwide Interbank Financial Telecommunication (SWIFT) system. The company asserts that its blockchain-powered solutions, utilizing XRP and its new stablecoin, RLUSD, offer a faster, more cost-effective, and transparent approach to cross-border transactions.

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In a recent blog post on May 28, Ripple highlighted how blockchain technology and the digital asset XRP could address many persistent issues in international payments. The firm pointed out the vulnerabilities within traditional systems, noting that global money movement still heavily relies on manual processes. Ripple explained that errors like incorrect account numbers, wrong SWIFT codes, or incomplete payment instructions frequently lead to failed transactions. The company added that failed payments not only waste time but also incur costs, create operational difficulties, and can damage relationships with partners or customers awaiting funds. Ripple concluded that reducing manual touchpoints and increasing automation were crucial for minimizing these risks.

Ripple further emphasized that these outdated systems, which often depend on numerous intermediaries and correspondent banks, are susceptible to delays, errors, and a lack of transparency. Payments can pass through as many as five institutions before reaching their final destination, a process that introduces uncertainty and higher fees. Ripple argued that this system is out of sync with the demands of modern commerce and the evolving needs of global businesses. The company stated that inconsistent messaging standards, foreign exchange markups, and regulatory complexities all contribute to what it described as an inefficient and risky ecosystem for cross-border transactions.

Source: create.vista.com

Source: create.vista.com

In response, Ripple has been championing its blockchain-based Ripple Payments solution as a contemporary alternative. The company explained that Ripple Payments offers a cross-border stablecoin payment solution that serves as a modern alternative to traditional cross-border payment rails. It further elaborated that it leverages blockchain and digital assets like XRP and stablecoins such as Ripple USD (RLUSD) to provide businesses with a powerful solution for quickly, reliably, and affordably sending and receiving stablecoin payments across borders.

Ripple claims its platform offers real-time settlement, transparent fees, and reduced operational risk, with access to a global payout network covering over 90% of the world’s foreign exchange markets. Despite ongoing concerns regarding digital asset regulation, Ripple and other blockchain proponents continue to maintain that distributed ledger technology promises a more efficient and inclusive future for international payments.

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