The Swift blockchain ledger has finally been released. This will allow banks to transfer digital deposits even outside of normal banking hours, but it is missing an important feature: the ability to swap currencies. This is good news for cryptocurrencies like XRP, as it keeps them relevant.
What Swift’s Blockchain Ledger Offers Right Now
As Cheeky Crypto explained, the new Swift blockchain ledger will allow banks to send digital deposits even during the night or over the weekend. There will no longer be limitations on banking hours, which will help make cross-border banking much more efficient. However, one important feature is still missing: the ability to swap currencies. At this time, banks can only transfer digital deposits in the form of their national currency. They cannot instantly swap from one currency to another.
Many expected the new currency swap feature to make it possible for banks to instantly convert currencies, for example from dollars to pesos, and thus make international settlement faster. Swift did confirm that this feature is coming in a future update, but they have not revealed when it will be available. As such, the only use that Swift’s blockchain ledger has for now is to move funds around. It won’t be quite as revolutionary as many had hoped.
Impact on XRP and Market Reactions
XRP is a cryptocurrency aimed at making cross-border currency conversion as fast and efficient as possible. It was therefore expected that the launch of Swift’s new blockchain ledger would have an effect on the cryptocurrency’s price. However, as the Cheeky Crypto team noted, XRP’s price remained more or less steady at around $1.09 following the announcement. This suggests that the market is just waiting for something more concrete from Swift, like the ability to swap currencies, before making its move.
As it stands, the lack of a full-fledged feature on Swift’s new blockchain ledger may help keep alternative solutions like XRP relevant. Since Swift has yet to offer an instant currency swap feature, cryptocurrencies that already have this benefit could fill the gap for international remittances and settlements.
What This Means for Banks and the Crypto Sector
The fact that Swift’s blockchain ledger has been launched without one of its most transformative features shows just how complex it is to use blockchain in global finance. It also shows that there will be a great deal of competition in this space. While banks will certainly benefit from the ability to move digital assets outside of normal banking hours, the real test will come when currency swaps are available.
As such, this move is not necessarily going to make cryptocurrencies irrelevant, especially not XRP. For now, the market is still looking at the long-term implications of Swift’s blockchain ledger, as the host of Cheeky Crypto points out. Until currency swap functionality is made available, cryptocurrencies will still be a viable option for instant currency conversions, and thus remain relevant.
Discover how to leverage stable assets like XRP by exploring funded crypto trading opportunities. Explore funded crypto trading.
Read also
Discussion
Comments from BuyCrypt Live. Sign in with Google or Apple — we create your BuyCrypt account on the way, the same one as in the app.
