Chris Larsen, the founder of Ripple, believes that Ripple has the potential to replace Swift, the largest payment network in the world to perform cross border transfers.
During an interview during the Block Stars’ podcast, he stated that banks will not trust the Proof-of-Work (PoW) and that the XRP Ledger could become a replacement to the current system for making cross-border payments.
Regarding the PoW consensus algorithm, banks and financial institutions are worried about how there could be a 51% attack on the network and rewrite the ledger. This could certainly end up with transactions that are double-spent.
Mr. Larsen stated that he considers that PoW systems and models would not be replacing the current financial system or take over Swift. As we have written at XRPNow, Ripple has a different consensus algorithm that is not based on Proof-of-Work and that would provide greater security to banks and financial firms to process transactions.
“I think the XRP Ledger, is already pricing to be that replacement to that existing inefficient system [Swift],” Larsen said during the podcast.
Demand for the XRP cryptocurrency could grow if financial participants start acquiring the digital currency to make cross border transfers. It is worth taking into account that Ripple is now already working with over 300 clients all over the world.