Is SWIFT facing challenges? Banks are turning to Ripple to improve payments with minimal disruption.

Gate News bot message, more and more banks are quietly integrating Ripple’s Blockchain infrastructure to improve cross-border transactions, opting for a hybrid model that does not require replacing their legacy systems.

This method is similar to the way they currently connect with SWIFT, allowing for smoother application.

The appeal of Ripple lies in its faster settlement speeds and lower fees, using XRP as a bridging asset. Unlike SWIFT, which may take days to complete, Ripple enables near-instant payments. Integration becomes easier through the Interledger Protocol, which connects traditional systems to Blockchain networks without disrupting internal operations.

Despite concerns over scalability and privacy issues, central banks in countries like the UK and Canada remain cautious, but financial institutions are increasingly attracted to Ripple’s ability to modernize payments without the need for a complete overhaul of infrastructure.

The future may not belong to a single Blockchain, but rather to an interconnected network. Marcus Treacher, a former advisor at Ripple, shares a similar viewpoint. Currently, we can see that Ripple’s model attempts to provide banks with a viable development path: leveraging the advantages of Blockchain with minimal disruption.

Source: Cryptodnes