The Society for Worldwide Interbank Financial Telecommunications (SWIFT) has come out to harsh dismiss cryptocurrencies claiming that they are “useless and unstable.”
Earlier this week, unnamed SWIFT representatives who attended a London briefing reportedly — as cited FXStreet report on Sept. 10 — made the following claims:
“They go down in value like a yoyo, they’re useless and unstable. And even if crypto companies do make it] stable, it’s still a basket of currencies.”
SWIFT’s potential competitors
Meanwhile, other representatives reportedly did not shy away from revealing the SWIFT network shortcomings, even though it has helped over 11,000 banks and financial institutions globally to connect.
Explicitly, significant cost and time efficiencies seem to hold it back despite the fact that it is processing millions of payments daily.
Reportedly, the representatives admitted:
“If you want to send a payment [with SWIFT] from Australia to China after midday, you instantly have a 12-hour delay because of opening hours.”
Such unfair comments towards bitcoin seem to be biased as there are other blockchain-powered alternatives which also pose the same potential threat. For instance, Ripple’s xRapid solution uses the XRP token to facilitate the instant settlement as money is sent from one currency to a destination currency.
Libra — Facebook’s planned stablecoin — is one enormous potential rival that SWIFT has failed to recognize. The social media giant intends to integrate the crypto coin to three of its wholly-owned apps, WhatsApp, Messenger and Instagram, thereby potentially exposing it to a combined 2.7 billion users monthly.
SWIFT representatives, on their part, anticipate that the impact Libra would produce can exist only for a short period.
Besides commercial sector rivals, governments, citizens, central bankers, crypto industry figures and regulators worldwide have expressed a range of concerns over Facebook’s ambitious cryptocurrency plans.
SWIFT now has to shift its stand as an increasing number of big financial institutions are embracing cryptocurrencies and blockchain-based payments.