SWIFT Questions the Role of XRP in Global Bank Payments

In the context of financial technology (fintech) entering a fierce competition phase between traditional systems and blockchain, the latest remarks from Tom Zschach – Chief Innovation Officer (CIO) of SWIFT – have drawn attention. He expressed skepticism about the relevance of XRP and Ripple as a payment tool in the banking sector, opening up a wide-ranging debate about the future of digital assets in the global financial system. Concern From SWIFT Zschach emphasized that XRP lacks a clear legal framework and is not reliable enough to become an official payment tool for banks. According to him, instead of relying on an external asset like XRP, financial institutions tend to choose tokenized assets ( or regulated stablecoins – which are within their control and more compliant with regulatory standards. He asked the question: "If deposits are tokenized and regulatory-compliant stablecoins can scale, why would banks have to pay fees to use an external asset when they can completely settle directly with the instrument they control and trust?" Impact on the XRP Market Right after the statement, the price of XRP decreased slightly by -2.02%, reflecting the usual volatility in the cryptocurrency market. However, this level of decline is still considered within the normal range, not enough to create a significant shock. Analysts believe that this move is only short-term, while the long-term trend depends on the development of the regulatory framework and the level of acceptance from banks. The Competition: Ripple vs. Stablecoin & Tokenized Assets In the context of stablecoins and digital assets issued by banks gradually gaining dominance, the competitiveness of XRP is being questioned. Banks typically prioritize transparency and compliance, which XRP currently does not fully meet. Nevertheless, observers believe that Ripple still holds a certain role in promoting dialogue about the application of blockchain in cross-border payments. The existence of Ripple has forced the traditional financial industry to accelerate innovation to avoid being left behind. Conclusion Tom Zschach's statement has rekindled the age-old debate: will financial institutions opt for decentralized blockchain solutions like XRP, or lean towards tightly regulated instruments such as stablecoins and tokenized deposits? Although XRP is currently facing skepticism, the market remains stable. The future of XRP and Ripple will largely depend on their ability to adapt to the regulatory framework, as well as their ability to demonstrate superior value compared to traditional financial solutions.