Recent comments made by Swift's Chief Innovation Officer, Tom Zach, on XRP have sparked heated discussions in the digital payments arena. The situation opens up new perspectives on XRP's role in banking.
Tom Zach's Statements on XRP
Tom Zach stated that banks would prefer other internal payment systems and regulated stablecoins like USDC over XRP. He claimed that XRP does not count as a deposit and lacks the status of regulated money, making it unsuitable for bank balance sheets.
XRP Community's Defense
The XRP community reacted sharply, reminding that the XRP Ledger has operated successfully for over a decade. This underscores XRP’s independence, making it a suitable asset for interbank settlements. XRP proponents assert that it addresses issues related to pre-funding in cross-border payments.
Competition Between Ripple and Swift
The video highlights the competition between Ripple and Swift for the same global clientele. Despite their differing approaches, both firms aim to modernize international transactions. Zach added that legal enforceability and liquidity are critical for banks, while Ripple supporters emphasize the company's collaboration with regulators and the implementation of their solutions.
Tom Zach's comments reflect Swift’s belief that regulated stablecoins will dominate banking settlements. However, Ripple supporters argue that XRP’s neutrality and efficiency position it as a genuine alternative to traditional systems.
