On Wednesday (January 30), on the second day of the Paris FinTech Forum 2019, Ripple CEO Brad Garlinghouse and SWIFT CEO Gottfried Leibbrandt debated in a panel called "Let's Send the Money", which was about the future of cross-border payments. These articles cover the most important of these exciting and important debates.
The panel was moderated by Elizabeth Schulze, CNBC International's technology correspondent. Schulze began to ask SWIFT's CEO why SWIFT was the future of cross-border payments.
The CEO of SWIFT pointed out that there are two reasons:
"First, because there are 10,000 banks in the network, and I think it's a flexible system, a correspondent bank, and another reason is [that] we are innovative as crazy … The great innovation we introduced three years ago is called GPI, Global Payments Innovation, which really takes the correspondent bank into the 21st century. Essentially, we introduced a unique identifier for each payment so you can now track your payments. We provided a set of rules for speed and we provided transparency on pricing. This has greatly improved the customer experience – that's all about it. I was in China a week before the last week, and the Chinese banks told me that "every payment we are sending to the US is within minutes, so it's nice that you have tracking, but now cross-border payments have really improved. to businesses: Now you can track it, etc. And I think other great news is that we already have a network, we can pull it out, make it back, etc. So we now have more than half of the payments worldwide Most of them arrive in half an hour, end to customer, customer.We have signed up for more than 400 banks, all 60 tops are there, and we are looking for general acceptance for a year and a half, and then all correspondent bank will be on the new platform … and with it, you get all the benefits of the existing model – bak-centric, deep liquidity, with all the controls that banks have built around KYC, checking sanctions and all related compliance controls, so I'm very excited about it … I don't think we could have done it without competition, making it clear to banks that they have to create their own acts that we share with we did them. We also couldn't do it without technology … "
The Ripple manager replied by describing the idea of "value internet". He then said he saw the dynamics between Ripple and SWIFT, which is no different from the dynamics between Amazon 1997-1998 and Walmart, calling it "David and Goliath". Later he said that although SWIFT GPI was a big step forward for the traditional corporate banking model, it was an attempt to make the "horse and buggy" faster when you could simply "move on to Ferrari".
Schulze then reminded Garlinghouse that he had previously said that Ripple would take over SWIFT in cross-border payments. Garlinghouse replied:
"Well, I also said there are ways we can work with SWIFT."
Schulze asked Leibbrandt how he felt about the partnership with Ripple, to which he replied:
"… I do not see the role of banks if they are developing fast enough … One of the most exciting things about the new GPI platform is the fact that it is very interoperable and open, and we have always been linking to other networks. Today we announce today the concept of R3 … where you can start a payment on a trading platform and get into a GPI by studying cross-connectivity with many things … You can do it to some extent right now, Santander is also SWIFT, so they can act as a peering point between the two networks … i strongly hope that within a few years the GPI will actually be real-time cross-border. ”
A special image from the Paris FinTech forum