We Reported last week, the SWIFT Sibos global banking conference took place this week where all the worlds banking elites get together and talk finance.
Audience member – ‘is there still a value proposition for Ripple in light of Swift’s new GPI instant payments system?’
People are looking at making things faster in their existing correspondent bank network, but nobody is taking away the need for pre-funded accounts. That’s the fundamental value proposition that we are discussing today
Navin Gupta – Ripple
Ripple had to make do with the Open Theatre arena to address their eager crowd, clearly SWIFT reserve center stage for its own staff and closest allies.
Rather noticeably, the Sibos conference gave very little or even zero coverage of what Ripple had to say and very few mentions.
ROSE AMONGST THORNS – Ripples Navin Gupta took questions from a curious but rather frosty crowd at the Sibos event
Sources said the Ripple stand was busy and they offered some rather tasty cocktails as well offer a rather tasty alternative to SWIFT.
Gupta was asked about SWIFT GPI or global payments innovation, designed to match RippleTech and maintain SWIFT’s relevance in the future.
Gupta argued such improvements in speed don’t change the fundamentals of the correspondent banking system, which is that banks need to hold capital in nostro accounts. He referred to this as the “liquidity problem”, it is a misconception that this will be addressed simply because current initiatives are making payments instant
GTR Fintech – At Sibos 2019
After watching videos posted by Sibos on the entire event, there was an obvious feeling of false overconfidence from the banking elites and SWIFT itself.
As Brad Garlinghouse said in an interview with SWIFT CEO, ‘you can take a horse and cart and make it go faster, but why not just make a Ferrari’.
Our guess is that there is about US$5-10tn that is stuck in pre-funded accounts around the world. This is money which the originating bank has to keep with the beneficiary institution to be able to make pay-outs. If this money were redeployed back into home economies can you imagine what effect it can have? When we speak with central banks, they love it
Navin Gupta – Ripple
Mr. Gupta loved showcasing RippleTech, more precisely xRapid, just imagine being Henry Ford at the worlds last few horse and cart conferences.
In November its Ripples turn to do the hosting with their SWELL event which has been branded the ‘Sibos killer’ by some journalists. Wonder if SWIFT will be there?!
Ripple’s xRapid is today used by more than 20 financial institutions. This is compared to the approximately 200 users of its first product, xCurrent. While xCurrent is also based on blockchain technology, it is, like Swift, a payment messaging system only.
GTR Review – At Sibos 2019
Feeling the Pressure
Sibos is for the banking elites to slap each other’s backs while drinking champers, regardless, Ripple is a serious a looming threat and boy do they know it.
Our source who attended the event said the overriding feeling was new tech was closing in and banks must innovate and evolve or they’ll be left behind.
The one thing that kept coming up with the banking system is the disruption of new technologies, i.e crypto currencies, blockchain and Artificial intelligence. The banks know they have to adapt and make major changes but they cant move forward using crypto without regulations set in place. Banks are moving but at a very slow pace
Evans Norty – Sibos Conference Host
The overriding takeaway here is that blockchains presence is being felt across all corners of the globe and certainly within the current banking system.
Clearly Ripples activity has caused a stir over the last few years, SWIFT, J.P.Morgan, et al, are all upping their game and trying to match RippleTech.
Ripple clearly have a long way to go yet but the change is happening and it is written across the faces of the Sibos elite. FURTHER READING
First they ignore you, then they laugh at you, then they fight you & then you win