SWIFT Faces Criticism Over Blockchain Integration Plans
- SWIFT announced plans to introduce a blockchain-based ledger for cross-border payments in September.
- Critics, including software engineer Vincent Van Code, compared SWIFT’s delays to the obsolescence of companies like Kodak and Blockbuster.
- Van Code expressed skepticism about SWIFT’s ability to compete with faster alternatives like the XRPL network, which uses RLUSD stablecoin.
- The integration of blockchain comes amid increasing pressure from customers for quicker payment settlements.
- Industry experts suggest that traditional banks must adapt to blockchain technology or risk losing clients to modern online banking solutions.
SWIFT’s proposed integration of blockchain aims to create a shared, real-time transaction record but has drawn criticism for its vague details and lengthy implementation timeline. The financial sector is witnessing a shift towards faster payment solutions, pressuring legacy systems like SWIFT.
With critics doubting SWIFT’s capability to implement its blockchain plans within a year, the urgency for efficient payment methods remains paramount as institutions explore alternatives.(Source)
