- The interbank system criticizes cryptocurrencies and admits its own deficiencies.
- SWIFT considers Facebook’s Libra as the only possible disruptor.
Society for Worldwide Interbank Financial Telecommunications (SWIFT) - international interbank system - does not consider cryptocurrencies and blockchain payment systems as rivals.
“They go down in value like a yoyo, they’re useless and unstable. And even if crypto companies do make is stable, it’s still a basket of currencies,” SWIFT representatives said during a breakfast briefing in London on September 9.
Notably, the organization believes that Facebook’s Libra has the potential to affect payments in the short run, provided that the contract is made within Libra.
Notably, there are about 11,000 banks and financial institutions connected to SWIFT. The system provides them with messaging capabilities and helps to move money around the globe. The system processes millions of payments daily, however, it is notoriously slow and costly.
The organization confessed that there are some issues that need to be addressed. Transaction speed and time are among of them.
“If you want to send a payment from Australia to China after midday, you instantly have a 12-hour delay because of opening hours,” they said.
Nevertheless, the 43-year-old Belgium-based network is not troubled by the growing competitors like Ripple’s xRapid solutions that allow for instantaneous and next to free money transfers.