Ripple, Cardano
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Recently, SWIFT released a report titled, Africa payments: Insights into African transaction flows. In this report, SWIFT touches on something to do with Mojaloop.  The report states that the SWIFT team at the Bill & Melinda Gates foundation played a role in developing a switch that verifies, routes, and handles settlements between diverse players including mobile money providers, banks, and merchants.

The interesting facet of it is that Mojaloop is also working with ripple, in a bid to enhance interoperability in the African market. In essence, the two technologies are working together in this project that will uplift millions of Africans out of poverty. While this is just a single project, it brings out the common goals of the two platforms and how they can benefit more from each other, when working together, instead of competing with each other.

Most XRP (XRP) investors believe that ripple will at one point outcompete SWIFT in the banking industry. However, the reality is that they need each other. SWIFT has something that ripple needs, and that’s the network and political leverage. Thanks to its market presence that spans decades, SWIFT has established strong ties with the finance industry. The banking sector has built most of its cross-border payments infrastructure around this platform.  On top of that, SWIFT has a high level of political backing, for geopolitical reasons.  For context, a German minister recently called out for the need for Europe to develop financial systems that are independent of the United States. But, while their chancellor came out in support of this, she added that they still need to work with SWIFT as a tool for preventing terrorism financing.  This goes to show that for geopolitical reasons, it will be a huge challenge for banks, especially in the west to abandon SWIFT and move to a new system.

The best bet would be cooperation between the two platforms, which is actually quite workable. Ripple has the superior technology, while SWIFT has the networks. Such a partnership would unlock the best of both. And if the success of the Mojaloop project is anything to go by, then things could head in that direction in the future.  Such a collaboration would give instant mass adoption of XRP in the banking sector as a tool for enhancing efficiency.  It would unlock the true value of this coin, as demand both from financial institutions and retail buyers looking to catch the XRP train would push price through the roof.


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