Will Blockchain replace the SWIFT system used by Banks?

Abiky

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Quote from: fullhdpixel on June 14, 2019, 02:13:12 AM

Most companies now are beginning to consider the use of blockchain the technology to operate their entire system and I think when it starts becoming glaring that blockchain technology is pushing swift out of the system already, they will also act fast on developing their own blockchain too, which is why I still believe that SWIFT may not really go out of fashion in any time.

They have very strong technology that has been able to sustain the company for a very long time which I am sure they will not be willing to give up anytime soon provided the team behind their technology is still much alive and following trend.

Yes. One way or another, mainstream businesses and financial institutions will start embracing Blockchain in every way. SWIFT can either join the Blockchain or be left behind as Banks look for other solutions that will increase efficiency over mainstream transactions. The most likely situation would be, that Banks will devise their own private Blockchain for better control over people's transactions. While Ripple provides a centralized solution that is regulatory-compliant, it may not be enough for most central banks worldwide.

As a result, private Blockchains will better suit their purpose for B2B transactions giving centralized entities complete control over the network's activities. On the other hand, public Blockchains like Bitcoin and Ethereum will better suit their purpose for decentralized payments that are secure and censorship-resistant for the world. Hence, it's not about SWIFT or Ripple, but rather how Blockchain could transform our economy for the better. Just my thoughts Grin

cahbagus555

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Quote from: Abiky on April 05, 2019, 10:27:09 PM

With Ripple's growing partnerships among banks and businesses worldwide, it seems that traditional payment systems will become replaced with DLT technology (aka as Blockchain). Because of the many benefits such technology provides, it looks likely that it will replace the old SWIFT system in the future. Unless such system does the switch to Distributed Ledger Technology, it may become outperformed by Ripple or Stellar in the future.

On the other hand, IBM has been working on a new payment network called "World Wire" powered by the Stellar protocol. Which means that existing players could be left in the dust if they don't grasp the benefits of the Blockchain.

Nonetheless, what are your thoughts about this? Huh

Stellar could adopted by many banks and for bussiness or financial service. About SWIFT, blockchain is efficient technology and very transparant ledger, if banks use blockchain technology, i think SWIFT could replace by blockchain

fullhdpixel

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Quote from: TheClownSong on June 10, 2019, 12:51:54 AM

Quote from: Abiky on April 05, 2019, 10:27:09 PM

With Ripple's growing partnerships among banks and businesses worldwide, it seems that traditional payment systems will become replaced with DLT technology (aka as Blockchain). Because of the many benefits such technology provides, it looks likely that it will replace the old SWIFT system in the future. Unless such system does the switch to Distributed Ledger Technology, it may become outperformed by Ripple or Stellar in the future.

On the other hand, IBM has been working on a new payment network called "World Wire" powered by the Stellar protocol. Which means that existing players could be left in the dust if they don't grasp the benefits of the Blockchain.

Nonetheless, what are your thoughts about this? Huh

With technology improved, i think it could happen SWIFT replaced by blockchain technology. Many banks adopting blockchain technology and i think when banks use blockchain technology for every transaction, SWIFT can be old technology for banking technology

Most companies now are beginning to consider the use of blockchain the technology to operate their entire system and I think when it starts becoming glaring that blockchain technology is pushing swift out of the system already, they will also act fast on developing their own blockchain too, which is why I still believe that SWIFT may not really go out of fashion in any time.

They have very strong technology that has been able to sustain the company for a very long time which I am sure they will not be willing to give up anytime soon provided the team behind their technology is still much alive and following trend.

Abiky

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Quote from: ricardobs on June 08, 2019, 06:24:59 AM

Hmmm… what you're saying is the truth. But I don't really think that banks are going to make use of these altcoins you have mentioned. What they might do is try to build something similar to them that they will be in full control of and that might then serves as a replacement for SWIFT. But we never know yet, or they can still do an upgrade that will help them continue with their current system. We just don't know anything yet.

Agree. Banks could either use a Blockchain system of their own, or simply join an existent Blockchain (mostly centralized) like Ripple or Stellar. On the other hand, SWIFT could either join the Blockchain or remain as is. But, that doesn't matter because Banks have slowly been adopting Blockchain technology for their own benefit. With or without SWIFT, I believe that our current financial system will be greatly improved in the future. Within a few years from now, we might not be using physical cash, but rather a "digital" version of Fiat.

There's a high probability that central banks will be using their own Blockchain ledger, instead of an existent one like Ripple, because it gives them greater control over transactions made worldwide. They could easily check balances, restrict accounts, or even freeze them with ease. A Blockchain system governed by Banks would be viable for the next generation of Fiat currency.

Nonetheless, Blockchain technology is still fairly new to the world. Which means, that it's still early to determine whenever it'll be the ideal solution for finance or not. As time goes by, technology will improve in many ways. Given the uncertainty of crypto and Blockchain tech, no one knows what will happen in the future. Just my thoughts Grin

mksundip

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it looks like the blockchain will be used by many industries, especially banking, but not to adopt cryptocurrency, only technology and blockhain systems will be used

bttmember

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I hope that soon banks and governments all around the world will start accepting crypto and receiving crypto in personal bank account will be just like receiving foreign currency that automatically converts to local currency. I think when this will hapoen we will achieve the peak of crypto adoption right at that moment.

Schirer

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One thing that one has to understand when talking about SWIFT is that there are a lot of manual risk evaluation involved and as far as I can see blockchain wont solve them ( this is regarding large transfers) . The blockchain is very promising when it comes to relatively small international transfers.

TheClownSong

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Quote from: Abiky on April 05, 2019, 10:27:09 PM

With Ripple's growing partnerships among banks and businesses worldwide, it seems that traditional payment systems will become replaced with DLT technology (aka as Blockchain). Because of the many benefits such technology provides, it looks likely that it will replace the old SWIFT system in the future. Unless such system does the switch to Distributed Ledger Technology, it may become outperformed by Ripple or Stellar in the future.

On the other hand, IBM has been working on a new payment network called "World Wire" powered by the Stellar protocol. Which means that existing players could be left in the dust if they don't grasp the benefits of the Blockchain.

Nonetheless, what are your thoughts about this? Huh

With technology improved, i think it could happen SWIFT replaced by blockchain technology. Many banks adopting blockchain technology and i think when banks use blockchain technology for every transaction, SWIFT can be old technology for banking technology

ahmed04

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If the trend of banking blockchain begins, I am sure that it will be picked up by absolutely all banks. Since the banks will have no other way out.

Olatunjex

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Quote from: Abiky on April 05, 2019, 10:27:09 PM

With Ripple's growing partnerships among banks and businesses worldwide, it seems that traditional payment systems will become replaced with DLT technology (aka as Blockchain). Because of the many benefits such technology provides, it looks likely that it will replace the old SWIFT system in the future. Unless such system does the switch to Distributed Ledger Technology, it may become outperformed by Ripple or Stellar in the future.

On the other hand, IBM has been working on a new payment network called "World Wire" powered by the Stellar protocol. Which means that existing players could be left in the dust if they don't grasp the benefits of the Blockchain.

Nonetheless, what are your thoughts about this? Huh

Blockchain technology is an innovative that can't be resisted, one day the old traditional banking way will be ignored and there will be general adoption of the technology nearly all part of the world.

seleme

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Depending on the development of blockchain ecosystem it can replace the whole banking payment gateways in 20 years. SWIFT system costs more money and transactions are reversable unlike blockchain transactions. Surely, it is not better than blockchain.

Chuky92

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You really stated the fact the way it is. One thing I have come to understand about most platforms in the world is when they realize others are embracing a trend they will follow suit so as to be part of what the future offers.
Blockchain is a technology which has come to disrupt many things, and it is really achieving it, I believe its a matter of patience and we will see mass adoption taking place.

Ucy

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They probably will.
The only reason they would do this is for decentralization, security and maybe immutablity. I doubt they will like other important features of blockchain very much(eg permissionless, trustless etc). Some say there is no point for decentralized system . that things can be better handled on Centralized system

rdewilde

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That's likely to happen because the world today is technologically driven, that is the world likes getting involved with any trending technology, thereby with blockchain being a trending technology now, the banking system will soon adopt so as to be in accordance with what their users will like and be free with. In case they don't, a blockchain platform will put them to check.

Ifychuks

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Quote from: Adriano2010 on April 12, 2019, 04:39:07 PM

I think in some years yes, the blockchain will replace the SWIFT system if banks wants. In my opinion is more easy to use the blockchain technology then what is used now in banks and more secure than the system used.

It will be a difficult task for the blockchain to take over the banks. Government restrictions on cryptocurrencies has an added advantage and will make it a more difficult task.

MIner1448

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I think in the future, when the blockchain will have improved bandwidth, I think it is possible and will be replaced, and most importantly , that no one can turn off, because decentralization is the basis of the blockchain.

efxtrader

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Quote from: ub27 on June 08, 2019, 08:06:25 PM

I doubt if blockchain will make banks obsolete, it's impossible. Both banks and blockchain will co-exist. I think in future, banks may adopt this innovation by enacting their own blockchain applications but I doubt if many will utilise already existing blockchain architectures like Ripple.

Agree, many bank adopt blockchain technology to process their transaction more eficient and less cost. Its hard to replace SWIFT because most big bank use this system and controlled by central banks. Cryptocurrency is peer to peer and i think banking system can not use this system

bgaf

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Quote from: lyks15 on May 24, 2019, 09:31:48 PM

I think this is impossible that blockchain will replaced the SWIFT system by the bank. Because first of all bank will not do an easy way to kill blockchain because people will choose always a blockchain because on it's characteristic is good rather than bank. All we know that bank is full of requirements so people always choosed to have an easy transactions using blockchain.

Yes but, how about the people who knows and comfortable with the bank transactions? I know there is a lot of people still will choose bank but some are move forward with advance technology available. But the problem with DLT (blockchain), Banks can replace money loss if proven error made by them but on decentralized approach if you loss a key to youre wallet say goodbye with youre funds. For some people they are scared on that.

ub27

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I doubt if blockchain will make banks obsolete, it's impossible. Both banks and blockchain will co-exist. I think in future, banks may adopt this innovation by enacting their own blockchain applications but I doubt if many will utilise already existing blockchain architectures like Ripple.

irixo10

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Many platforms inclusive of the banks will one day come to the resolution that blockchain has come to stay thus embracing it. But I think for blockchain to achieve this feat it first needs to be scalable thus offering high Transaction Per Second (TPS) in this way causing the neccessry mass adoption.

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