The XRP community researcher recently drew attention to the dated statements of the investment banking of Morgan Stanley, who praised Ripple as a suitable SWIFT alternative.
This assessment was emphasized by @smqkedqg and was published in an academic review from a review of banking and financial law of Boston University (Volume 36). It is noteworthy that the initial recognition of Morgan Stanley came in her publication called “Blockchain in banking: a destructive threat or instrument?”
A faster, safe and cheaper way forward
According to the magazine, Morgan Stanley noted that the adoption of a “wave -like payment system” can reduce the settlement time, speed up transaction and reduce fraud risks. These improvements are aimed at long -standing inefficiency in cross -border banking, where delays, intermediaries and expensive foreign currency conversions often slow down transactions.
Ripple’s Distributed Ledger Technology (DLT) provides real -time transactions without the need for correspondent bank accounts. This decision significantly reduces operating expenses for banks and increases funds available for customer transfer.
The article positions the wave among the most serious applicants for revising the outdated banking infrastructure, especially when they are cited along with wider options for blockchain use in the financial sector. From intellectual contracts to improving conformity, a legal review indicates DLT and, in particular, Ripple, as a means for such a necessary transformation.
In addition to Ripple, Piece also explores how smart Ethereum contracts and blockchain -based auditing routes can increase supervision of the regulatory body and transparency.
Ripple’s growing legitimacy among institutions
The Morgan Stanley quote shows the growing institutional recognition of the Ripple model as a viable replacement for outdated systems. It is noteworthy that this recognition is not new. Previously jpmorgan Highlighted XRP and Ripple as key players who unlocked 120 billion dollars who fell into ineffective cross -border payments.
He noted that multinational corporations transfer 23.5 trillion dollars a year, about 25% of global GDP. However, these funds are faced with significant inefficiency in speed, cost and transparency. These issues bring 120 billion dollars in annual operating costs from the conversion of currency caught in liquidity trap and delayed calculations.
While organizations such as Ripple, SWIFT and CLS Group are working on solutions, JPMorgan noted that SWIFT is still based on outdated banking systems of correspondents, and the CLS group supports only 18 currencies.
Meanwhile, he recognized the Ripple payment infrastructure in real time, which uses XRP for resolving, for its potential, but criticized it for the volatility of cryptocurrency.
It is noteworthy that Ripple itself publicly disclosed that he is developing a system that can serve as an alternative to SWIFT. However, whether Ripple will ultimately replace SWIFT is still unknown.
Despite the uncertainty, when companies such as Morgan Stanley publicly recognize the potential of Ripple, this adds weight to the aspirations of XRP enthusiasts.
