Conflict between Ripple and SWIFT, Bitcoin Price Increase Turns Chaotic, XRP Surges 100% in Transaction Volume - Cryptocurrency Update Summary
In the world of fintech, a significant dispute has arisen between two industry heavyweights: Ripple and SWIFT.
The conflict began when Tom Zschach, SWIFT's chief of innovation, publicly criticised Ripple, claiming that the company had "survived a lawsuit." Zschach's remarks were made in the context of SWIFT's stance on Ripple, viewing the latter as tied to a competitor, rather than a neutral infrastructure like itself.
SWIFT, an acronym for the Society for Worldwide Interbank Financial Telecommunication, operates on a unique structure. Thousands of banks share control and set the rules together, ensuring a level of neutrality and inclusivity.
On the other hand, Ripple and its associated XRP network operate under a decentralised model. The XRP network is managed by independent validators distributed across the network, collectively verifying transactions using a federated consensus mechanism. However, Ripple Labs, the company behind XRP, holds a significant portion of the tokens and manages their gradual release to maintain stability and influence. It's this aspect that has raised concerns about Ripple's ability to influence the XRP Ledger network.
Meanwhile, in the realm of cryptocurrencies, Bitcoin is experiencing a setback. After failing to hold the $120,000 level, Bitcoin dropped below $109,000, marking a hard reversal attempt. The cryptocurrency has also lost the 50-day EMA, a moving average curve that previously acted as reliable support.
Compliance in the financial sector is another area of focus. Creating common rules and ensuring enforceability and privacy are crucial aspects of maintaining trust and security in the industry. Both SWIFT and Ripple are addressing these concerns in their respective networks.
Public blockchains, according to SWIFT, are unsuitable for core financial infrastructure due to a lack of enforceability and privacy. This stance, however, has sparked debate within the fintech community, with many banks ready to take the best parts of blockchain technology without adopting entire networks.
As the landscape of finance continues to evolve, the clash between Ripple and SWIFT serves as a reminder of the challenges and opportunities that lie ahead in the industry. The battle for dominance in the realm of cross-border payments and financial infrastructure is far from over.
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