XRP can replace the international payment giant SWIFT

Ripple founder Chris Larsen says the San Francisco-based startup believes XRP will replace Swift, the legacy international payment network used by more than 11,000 banks and financial institutions.

In a new interview podcast ‘Block Stars’ Larsen said he believes the banks will never trust the system of proof of work (PoW) of Bitcoin to validate transactions. He points to the risk of a 51 percent attack in which a miner or swimming pool earns more than 50% of the network’s hash rate to rewrite the general ledger and double previous transactions, with banks being able to find Bitcoin for too risky for settlement.

“Miners can rewrite history. That’s why I don’t think you’ll probably see that proof-of-work models are inside the global financial system to take the place of Swift and correspondent banking, for example.

While I think XRP Ledger could be this replacement for the existing inefficient system. “


According to Crypto51, which tracks the theoretical cost of 51 percent attacks on blockchain networks, such an attack would currently cost $ 334,703 per hour to gather enough computing power to take control of Bitcoin’s ledger.

XRP cannot be extracted and relies on a completely different consensus protocol. Instead, Ripple controls a list of recommended validators that are trusted to process transactions. Ripple claims that one day it plans to lose control of the list, which has fueled accusations that XRP Ledger is centralized.

Larsen says Ripple has decided to focus on a company focused on businesses, and Swift remains their main goal.

“I think we started [as] a kind of consumer company. However, we quickly saw that this could have the maximum impact, that being a corporate company working with existing financial players and new challenges to the financial system would be much more successful.

Because these were organizations that already had hundreds of millions of customers and had this major problem.

In many ways, maybe 80% of what they do was just fine and didn’t have to change. But there was one key component of cross-border payments that was fundamentally disrupted because they depended on a system built in the 1970s – Swift and this asynchronous Swift correspondent banking system, which is just a nightmare. “

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