Ripple Faces Firm Competition From SWIFT gpi: Bank of America

Paigambar Mohan Raj
Grayscale's XRP Move Sparks Hope, Will It Turn Bullish for the Coin?
Source: Crypto News Flash

Ripple continues to make waves among mainstream financial companies. The firm recently received approval for its ‘Major Payments Institution License’ application in Singapore. The payments provider has also partnered with SBI Holdings, the Saudi Arabian Monetary Authority (SAMA), Banco Santander, Western Union, UAE Exchange, and American Express. Since Ripple uses the XRP token, such partnerships will likely impact the token’s price.

Also Read: Ripple Receives ‘Approval’ In Singapore For Major Payment Institution License

In a recent report, Bank of America (BOA) recognized Ripple’s role in real-time payments in the Asia Pacific region. Head of Treasury Products at the bank Venkat ES remarked that blockchain technology was crucial in enabling smart contracts to digitize trade documentation. Venkat stated that Ripple’s work in the payments space is a “possible exception.”

Also Read: How to Deposit Coins at Bank of America

However, he did mention that the firm is facing stiff competition from SWIFT gpi. The technology allows for cross-border payments across financial networks. Venkat said that the SWIFT gpi technology is being favored over the blockchain company in many circumstances.

Can Ripple take on SWIFT gpi?

SWIFT gpi has been around for quite some time now. In fact, many believe that the innovation was a reaction to Ripple.

Competition is good for the industry and for business. Moreover, competition also helps bring forth new innovations. Therefore, users and investors should welcome more players in the field.

With that being said, SWIFT GO, which is built on its gpi platform, has partnered with more than 500 banks in 120 countries. Ripple has a lot smaller footprint. However, the blockchain company is the number one pick for many countries’ CBDC (central bank digital currency) programs. Palau, Bhutan, Montenegro, and Hong Kong are some of the countries working with Ripple to push their CBDC endeavors ahead.

Also Read: Ripple Whales Acquire 360 Million XRP Amid Price Drop

Although SWIFT is more globally accepted, Ripple is making waves with technological leaps. As mentioned above, SWIFT’s gpi platform was also inspired by the blockchain company’s efforts. Therefore, it might be safe to assume that SWIFT gpi has chosen a worthy contender as a rival.