Ripple joins hands with the US central bank and other large banks to create a global payment management system, creating SWIFT 2.0

Ripple announced today that it has reached its first agreement with multiple large banks to create the Global GPSG，Global Payments Steering Group ).

Bitcoin has always been the king of digital currencies, and its popularity and market share are far beyond the reach of competing currencies. Although Ethereum has developed rapidly in less than a year, its blockchain was split into two due to the DAO incident, which was severely damaged and is still recovering.

Ripple chose to work quietly behind the scenes, dealing with partners in the banking industry, trying to attract more people to use cross-border blockchain transactions.

Building a SWIFT 2.0

The traditional banking method of transferring money across borders and between banks has worked well for more than 40 years. This method is called SWIFT.

SWIFT stands for Society for Worldwide Interbank Financial Telecommunication, which serves more than 9,000 banking institutions in more than 200 countries around the world. SWIFT has already noticed the threat posed by Bitcoin to its system, but what it should really guard against is Ripple.

SWIFT existed before the digital age. It is arguably the best cross-border communication and transaction system available, but it still has a lot of room for improvement. For example, transactions cannot be completed in real time, the speed of transferring funds and information is very slow, and it is expensive.

When necessary, SWIFT may become a political tool. Once the United States dislikes certain countries, it is likely to ask SWIFT to terminate its services in those countries. The GPSG proposed by Ripple represents the future development direction of the industry. If you like, you can also call GPSG SWIFT 2.0 .

Don Donahue, President of GPSG, said:

The formation of GPSG is critical because it represents the first time that major banks have come together to plan for cross-border transfers using blockchain. I am excited to be a part of this organization because GPSG is a group of strategic and visionary leaders who are committed to creating the next generation payment network.

Creating a modern payments network

First of all, you must understand that GPSG was not established to replace SWIFT. It's just that their concepts are similar, and the GPSG network is more efficient in comparison.

GPSG members include Bank of America, Merrill Lynch, Santander, UniCredit, Standard Chartered, Westpac Banking Corporation and Royal Bank of Canada.

GPSG is a world first in scale. It lays the foundation for a complete modern payment network. It is also the only blockchain banking network in the world with clear rules and management models.

A simple partnership will allow major banks to use a global real-time transaction network. With payment rules and standards, process support and a solid community, GPSG can provide banks with a low-risk approach to using blockchain technology to achieve their payment goals.

Julio Faura, Head of Research and Development at Santander Bank, said:

The time has come for the banking industry to stop talking about the potential benefits of blockchain and start making them a reality. The devil is in the details. We joined GPSG to promote the standards and processes that the banking industry must implement to create the perfect payment network.