If you could redesign SWIFT today, what would you change and how would you build it?
Banking
Asked by Question Bot07/Apr/20151 answer
1 Answer
F
Faisal Khan
Answered 07/Apr/2015
This is a tough one. For those in the know, you would understand, the similarity of SWIFT and the whole correspondent banking model and the decentralized nature of the blockchain. There are a lot of parallels, but the main differentiator is the centralized nature of SWIFT versus the decentralized nature of crypto-currencies.
I would most likely go the Ripple (http://www.ripplelabs.com) route. Ripple for sure has got this right. They are out to fix just what this question poses.
One of the unique thing about Ripple is that it is not fundamentally changing the entire payment stack for payments, but tying in various payment networks together, those that are on the Ripple protocol. See the slides* below.
So, the simple answer would be to have and implement the Ripple protocol, all across, in place of SWIFT.
*All slides courtesy of Ripple Labs.
I would most likely go the Ripple (http://www.ripplelabs.com) route. Ripple for sure has got this right. They are out to fix just what this question poses.
One of the unique thing about Ripple is that it is not fundamentally changing the entire payment stack for payments, but tying in various payment networks together, those that are on the Ripple protocol. See the slides* below.
This is how correspondent banking looks like today (2-5 days of settlement time):
And this is how it looks like with Ripple in the equation:
So, the simple answer would be to have and implement the Ripple protocol, all across, in place of SWIFT.
*All slides courtesy of Ripple Labs.