Last year, Ripple threw down the gauntlet, offering a major challenge to the well-used Society for Worldwide Interbank Financial Telecommunication (SWIFT) payment system. And now, the highly respected payments system is turning to blockchain to keep it ahead of the game.
SWIFT is launching trials for its new Payment Validation System”, after bringing in its “integrated payment validation” into action last December in an attempt to compete with emerging blockchain companies.
Late last year SWIFT India and MonetaGo teamed up to form a pilot shared DLT network in order to upgrade Indian bank services, facilitating fraud prevention and security, with the plan to be able to service all Indian banks in the future by using the shared network.
Ripple, itself no slouch, has just joined three other partners to form a regional alliance called Blockchain for Europe in order to bring together what it describes as “fragmented” voices in Europe into a “more unified whole” in matters of the blockchain. Such moves are sure to offer confidence to intuitional players such as American Express, in the fact that Ripple is becoming a far more representative voice for the blockchain industry as a whole, despite its Bitcoin purist detractors.
Ripple has done as its name suggests, making a worldwide case for its native token XRP as a banking and digital money transfer service worthy of competing with many older systems. Clearly, the pressure has had some impact on SWIFT, resulting in its continuing interest in utilizing DLT solutions for its banking services.
SWIFT clearly wants to demonstrate that it can hold off challenges for the number one spot by examining its services and establishing where improvements can be made. The new Payments Validation pilot now has 14 major banks involved in its current error-finding project. SWIFT stated in an official release that:
“The pilot is the first stage in the roll-out of the ambitious gpi validation program. The goal of the pilot is to build the foundation of a new integrated and interactive service that will significantly improve efficiencies in the payments process and which will ultimately be made available to all 10,000 banks across the SWIFT network.”
Ripple’s chief market strategist, Cory Johnson, was quick to release a video in response which highlighted the benefits of Ripple Blockchain solutions.
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