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The CEO of SWIFT today revealed that the institution is working on a proof of concept for the integration of the R3 trade finance platform of a blockchain start-up into the SWIFT GPI framework.
Blockchain integration for proof of concept
The Company for Global Interbank Telecommunications (SWIFT) is a global bank payment network. He works with more than 11,000 institutions and spends about $ 200 billion a day.
Today & # 39; hui, Speaking At the Fintech Forum in Paris, the company's CEO, Gottfried Leibbrandt, revealed that he was working on a proof of concept for the integration of the trade finance platform based on an R3 blockchain into the framework. GPI of Global SWIFT from SWIFT. Leibbrandt said:
We announce later today a proof of concept with the R3 blockchain on commerce, in which you can make a payment on the trading platform, then transferred to GPI. We are exploring interconnectivity with many things and banks have always been part of this interconnectivity.
The GPI initiative was introduced by SWIFT in 2017 and aims to speed up payment processing times, reduce costs and increase transparency. However, it relies mainly on existing infrastructures and can therefore be quite slow and expensive.
Fire
Leibbrandt was speaking on stage right next to Ripple CEO Brad Garlinghouse. The latter has previously criticized SWIFT for its high published error rate, stating:
The error rate published by SWIFT is six percent. Imagine that six percent of your emails did not go through without additional human intervention.
Garlinghouse did not fail to emphasize the benefits of decentralization, while highlighting some of SWIFT's weaknesses:
Today, Swift is a one-way messaging framework, it's not a liquidity provider. When we think of a valuable Internet, it's a mix of two-way messaging frameworks – moving from a real-time discussion protocol if you want – to real-time liquidity.
On the other hand, Leibbrandt said that his company's historical reluctance towards the blockchain was also fueled by volatile fluctuations and a sharp fall in the price of cryptocurrency.
He also pointed out that much of Ripple's value proposition is XRP – cryptocurrency and that banks are reluctant to convert due to volatility.
Although none of them has evoked a potential short-term partnership, Garlinghouse is open to "ways of working with SWIFT".
However, it should be noted that last year, R3 launched an application to improve global payments by cryptocurrency, Corda Settler, whose first settlement mechanism was the XRP.
And although R3 and Ripple are technical competitors, following the announcement of SWIFT, the price of XRP 00 note an increase of 8.8% at the time of writing these lines.
What do you think of the SWIFT announcement? Do not hesitate to let us know in the comments below!
Images courtesy of Shutterstock
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