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HomeCrypto NewsMarketRipple vs. SWIFT: Live Demo Shows How XRP Reduces Cross-Border Payment Costs and Delays

Ripple vs. SWIFT: Live Demo Shows How XRP Reduces Cross-Border Payment Costs and Delays


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A recent demo compared to SWIFT shows how XRP can facilitate remittances between the US and Japan, cutting costs and saving time.

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Ingrid, a US-based software engineer, has made a live demonstration comparing the cross-border payment processes of blockchain-based payment firm Ripple and the traditional settlement provider SWIFT.

Taking to X, the developer, known for his pro-XRP stance, posted the clip demonstration. He particularly compared sending funds between financial institutions in the United States and Japan using the solutions of Ripple and SWIFT.

Ingrid aimed to showcase XRP as a game-changer digital asset in the cross-border payment landscape.

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The Process for SWIFT

According to the clip, the SWIFT system finds a link between the source and destination banks once the sender’s bank initiates the transactions. It does this process by two correspondent banks.

In particular, the sender’s bank moves the fund to its dedicated correspondent bank, attracting a fee. The sender’s correspondent then moves the money to the receiver’s correspondent, attracting another fee. 

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Meanwhile, the clip indicated that the link between the two correspondent banks also takes a fee. The final lap of the fund movement sees the destination bank receiving the money with at least three rounds of charges. 

The Process for Ripple

On the other hand, the software engineer demonstrated the process for Ripple using two scenarios. They involve using RippleNet xCurrent with and without XRP. 

In the first case, the sending bank merely connects to RippleNet xCurrent. This method allows for real-time communication between all the parties involved in the transactions.

In other words, the sender’s bank, sender’s correspondent, receiver’s correspondent, and receiver’s bank communicate simultaneously, processing the funds instantly without delay.

Notably, the process also attracts multiple charges. Meanwhile, according to the clip, using XRP in RippleNet for the same procedure attracts only a fraction of the cost. 

The sender’s bank transfers the funds using XRP from its account in real-time. Passing through Ripple, the receiver’s bank gets the sent XRP. Upon receipt, it connects to a local third-party liquidity provider to exchange the XRP for the desired local currency.

While Ingrid’s clip was a demonstration using XRP, such a process already happens in Asia. Specifically, The Crypto Basic has reported that Japan payment giant SBI commenced remittances between Vietnam, the Philippines, and Indonesia using XRP.

According to the report, Ripple partner Tranglo will facilitate the exchange of XRP to local currencies. 

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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.



Abdulkarim Abdulwahab
Abdulkarim Abdulwahabhttp://thecryptobasic.com
Abdulkarim Abdulwahab is a blockchain writer with a specific interest in journalistic writing. He covers breaking events in the crypto community and blockchain industry. Over the past year, he has published over 1,500 short-form and long-form content for Web3 publishing firms.

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