Crypto Adoption: A Bank Ditches SWIFT For Stablecoins To Power Cross Border Transfers
The mass adoption of digital assets has been one of the main goals that the crypto industry has set.
There have been made a lot of moves in this direction, and the successful achievements continue to pop up this year as well, despite the global crisis that has been triggered by the coronavirus pandemic.
Replacing SWIFT with innovative and more advantageous solutions
SWIFT is the traditional payments system that has been used by banks and financial institutions for decades now, but it became flawed over time.
Ripple, for instance, has been working hard to replace it with an innovative solution, and the San Francisco-based company has been doing this successfully via the XRP-powered ODL.
The On-Demand Liquidity offers people the opportunity to send money across borders instantly, cheaply, and safely as well.
There’s a European bank that says goodbye to the legacy payment messaging system SWIFT and it will use the stablecoin USDC to power cross-border transactions.
Bank Frick which has been founded back in 1998, is one of the most crypto-friendly ones in Lichtenstein.
Banks switches to USDC for cross-border transactions
Now, the bank says it’s entirely switched to USDC, and it will be using the stablecoin to move money across borders on behalf of the clients.
“With the addition of USDC, we enable our customers to process USD payments quickly and token-based. Compared to the classic SWIFT procedure, the processing time is significantly reduced,” according to official notes.
Just to refresh your memory, Coinbase and Circle launched USDC in late 2018.
This stablecoin has been created to be pegged to the US dollar and this gives banks the best opportunity to capitalize on both the transfer speed of crypto and the reliability of the US dollar.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.