PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

SWIFT vs. Blockchain

By Steve Murphy
May 19, 2022
in Analysts Coverage, Commercial Payments, Cross-border Payments
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
SWIFT vs. Blockchain

SWIFT vs. Blockchain

This posting is in VentureBeat and written by a senior at a blockchain payments network. The piece essentially contrasts the globally dominant SWIFT network for financial transaction messaging with the rising interest in and use of blockchain networks for similar purposes. We have been covering this general topic on these pages and in member research now for some time, therefore many readers will be familiar with the innovations that have been happening and will continue to occur in x-border transactions. Some readers will also have viewed a recent webinar conducted by Mercator as it relates to Russia sanctions, which includes denial of access to SWIFT for various Russian banks, which included discussion around alternative networks and CBDCs.

‘SWIFT has made it much easier to dispatch cross-border payments and has established itself as a dominant player in global financial transactions. But only recently has it gained mainstream attention, when the United States and European Union removed key Russian banks from the cooperative, including Bank Otkritie, Novikombank, Promsvyazbank and more, to further economic sanctions that started in February 2022…

As the financial industry homes in on SWIFT, it begs the question, is there a better and faster way to accomplish cross-border payments? Many are now seeing blockchain technologies become the mechanism for driving the next generation of global finance solutions.’

The author goes on to review some of the inherent benefits associated with blockchain-based transactions, including speed, cost and security. The blockchain route as an alternative to SWIFT has been brewing since around 2016 when Ripple publicly challenged SWIFT at events around SIBOS in Switzerland that year. Other networks have since grown up as well and then CBDCs also began to take root over the past several years. So the alternative(s) remain active and growing, and it is a matter of time as to how large a role they play in the future. As pointed out in the previously mentioned webinar, one of the downsides to weaponizing financial transaction systems (justifications aside) is that a greater focus will be placed on alternatives to the status quo, which was already underway anyhow.

‘With blockchain’s elimination of reliance on intermediaries, international banks can connect directly to one another on the same network, cutting down time and resulting in minimal fees. While current cross-border transactions are costly and can take several days, blockchain technology enables them to take place in a matter of seconds. These transactions can also be better tracked, as the blockchain keeps a record of all transfers of data, which are stored and timestamped in the master ledger…

Banks that invest in decentralized systems and adopt blockchain technology will soon realize its many benefits. With regulations in place for commercial banks, there will first need to be standards and guidance established. Once these standards are established, financial institutions will have the opportunity to redefine the entire industry and prove blockchain’s transformative use cases for global finance.’

Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: BlockchainCBDCCross-BorderCross-Border PaymentsFinancial MessagingRippleSwift

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    gift card programs

    The Gift Card Boom—and What’s Driving It

    May 21, 2025
    Fleet Management payments

    Driving Into Digital: How Modernized Payments Platforms Impact Fleet Management

    May 20, 2025
    emerging payment trends

    From the Name on the Cup to Custom Hotel Lighting: The Future of Loyalty Programs

    May 19, 2025
    push notification bank

    From Bland to Beneficial: Using Push Notifications to Reach Business Customers

    May 16, 2025
    recurring payments, PCI Compliance for small business, Fintech for Underserved Small Businesses

    Tariffs May Create an Opportunity in Small-Business Cards

    May 15, 2025
    Using the Card “Beyond” Payments to find the Holy Grail

    Using the Card “Beyond” Payments to find the Holy Grail

    May 14, 2025
    Payments Modernization

    Playing Offense and Defense: Why Now Is the Time for Payments Modernization

    May 13, 2025
    Authorization Rates

    Boosting Revenue for Merchants by Optimizing Authorization Rates

    May 12, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result