On Tuesday, the market capitalization of the XRP currency, which is linked to the Ripple payment network, temporarily surpassed the capitalization of Ethereum. Part of the reason for this was the popular rumor that the next SWIFT network update will be integrated with Ripple. A SWIFT spokesperson denied the rumors on Tuesday.
Ethereum has long been the number two cryptocurrency right after Bitcoin, so the fact that the digital asset XRP briefly overtook Ethereum came as a surprise to many.
However, if you carefully examine the situation, nothing unexpected happened. Ethereum has slowly fallen in value over the course of this year, largely due to intense competition in the smart contract space, as well as a number of promised updates that have yet to see the light of day. Ripple, on the other hand, has been signing agreements with major financial institutions all year long.
The SWIFT update is an addition to GPI systems. The GPI system, launched in 2017, is intended to solve the problem of slow international payments. Currently, this system is used by most banks in the SWIFT network. Harry Newman, SWIFT's head of banking told the Financial Times in July: "It's no secret that the correspondent banking system is a 1998 model. We are currently busy creating a model suitable for 2018."
The update, which will go live on November 18, is a technical one, with its main feature being the ability to track all transactions. Regarding rumors of integration with Ripple, the representative said:
I am not sure where these rumors came from, however, regarding the upcoming update, I can say that it is in no way related to RippleNet. The main goal of the update is to ensure traceability of all transactions, which will allow banks to track GPI payments in real time from start to finish.
According to a source close to the management of SWIFT, at the moment there is no evidence that the companies are planning integration. In addition, the news publication Coinnounce has published several articles on this matter. They indicated that the technical update of SWIFT on September 21 was the reason for the increase in the price of Ripple, and that both companies are pursuing the same goals.
Be that as it may, these rumors definitely benefit the price of XRP.
According to financemagnates.com
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