1. Differences
-Real-time Settlements: Ripple operates on a blockchain protocol that enables real-time settlement of transactions, where SWIFT transactions often take several days to settle due to batch processing and reliance on correspondent banking relationships.
-Decentralized Ledger: Ripple uses a distributed ledger technology (DLT), which allows for a more direct transfer of value across borders without intermediaries. SWIFT, on the other hand, is centralized and relies on a network of banks that hold accounts with one another.
2. Opportunities
-Accessible Payment Systems: Ripple’s technology allows individuals without access to traditional banking systems to make and receive payments quickly and at lower costs. This can be particularly beneficial in regions with limited banking infrastructure.
-Microtransactions: Ripple’s efficient transaction processing allow for microtransactions, which can support small business owners and entrepreneurs who need to send and receive money in small amounts.
-Cross-Border Remittances: Ripple’s technology can faciliate cheaper and faster remittance services for migrant workers sending money back home, which can significantly impact their families and local economies in developing countries.
Thanks
Angela
READ NEWSLETTER ARTICLE HERE: https://prisonprofessorstalent.com/journal-entries/march-20-2024-lesson-20-ripple-xlr/
