Collaboration Between Ripple and Wells Fargo on SWIFT Replacement
The Clearing House, a Ripple partner, is collaborating with Wells Fargo to challenge SWIFT’s supremacy with a new instantaneous payment system.
The Clearing House, a well-known Ripple partner, is collaborating with Wells Fargo to develop a cross-border payments system that is “particularly built to promote digital commerce” and might eventually replace SWIFT.
The technology, dubbed Real-Time Payments (RTP), would enable real-time digital currency transfers between qualifying Wells Fargo accounts. A new Wells Fargo online service agreement detailing how this effort might directly threaten SWIFT’s supremacy has been released online:
According to the Clearing House, the RTP Service is tailored “for the digital, on-the-go manner we live and work today.” Unlike competing payment systems, the RTP system, in particular, has real-time posts, instant confirmation, and a secure two-way messaging service. Transfers would be quick and permanent, giving the account user complete control, exactly “like cash.”
Nonetheless, it seems that Wells Fargo would severely restrict the RTP service with a $5,000 per payment limitation, despite the fact that The Clearing House has said elsewhere that their system operates within a $100,000 credit transfer limit. Additionally, Wells Fargo has the right to terminate, alter, or stop access to the RTP service at any time.
In the end, though, this is another proof that digital currencies are gradually gaining acceptance by established financial institutions. Major banks are realising the need to optimise commerce flow in the digital economy via the use of custom-built technologies. Indeed, despite some reservations, Wells Fargo has said explicitly that it would “retain the ability to add new qualified accounts” to the RTP Service.