XRP Faces Uphill Battle Replacing SWIFT
XRP (CRYPTO:XRP) has long been touted as a potential replacement for SWIFT, the global banking network that handles trillions of dollars in transactions each day. However, Ripple's own fastest-growing product, Ripple USD (CRYPTO: RLUSD), may be quietly making it harder to defend this idea.
Ripple promotes XRP as a solution for banks to move parked money by converting dollars into XRP, sending it across the ledger quickly, and then converting it back into local currencies upon arrival. However, this process assumes the risk of XRP's price fluctuations, which have been significant in recent years.
In contrast, using dollar stablecoins like RLUSD is a more straightforward solution that moves quickly and arrives at its destination maintaining its original value. Banks can utilize RLUSD throughout the entire transaction without needing to buy or hold XRP, making it an attractive option for cross-border payments.