Corda platform developers and international SWIFT system will transfer money using distributed registries
SWIFT is an interbank cash transfer channel. In February 2019, it became known that the technology of cross-border payments could be improved and modified using distributed registries.
A number of moves have been taken in the direction of SWIFT and blockchain integration. In particular, the general director of the interbank system, Gottfried Leibbrandt (who recently stated that he was in this post only until June 2019), spoke about cooperation with blockchain firm R3.
R3 CEV LLC is a financial and technological research organization from New York (USA). Known for developing blockchain platform Corda and cooperation with more than two hundred large companies and banks.
Corda users will soon be able to make payments on blockchain platform and send them to SWIFT GPI (Global Payments Innovation) users. Moreover, these are customers of more than 1,100 financial institutions all over the world. Now SWIFT GP is 300 billion dollars of daily transactions and 500 international payment corridors.
At the same time, SWIFT and R3 are not going to use cryptocurrency as transit funds that are not subject to additional duties. “Fiat only,” said Gottfried Leibbrandt. We are ready to prove that ordinary money is just as good.”
International SWIFT system is an alternative to cryptocurrency transfers
In the explanation to the main cryptocurrency of the world, it is written that Bitcoin is a peer-to-peer payment system. Ten years have passed since the advent of BTC, and traditional financial institutions tried to take for themselves all the best that digital assets had brought them.
Moreover, “ordinary” financial corporations themselves began to make secure and instant payments. A prime example here is SWIFT. Version 2.0 of interbank money transfer called SWIFT GPI appeared in 2015. The Citi financial consortium adopted it immediately. In 2019, more than 90% of all payments from the USA to China at Citi Bank go through the SWIFT GPI. The average payment time is 18 minutes, and the fastest transactions last 9 seconds.
Many people are puzzled: why create SWIFT 3.0 on blockchain, if SWIFT GPI is good enough? It turned out that the task now facing the payment system is not to depend on any government agency. SWIFT also reports increased appetites for some countries and large business.