Cryptocurrency XRP is hit by 'phantom blockchain' allegations as massive transactions remain scarce

In the world of digital finance, two giants are locked in a fierce competition: Ripple and SWIFT.

SWIFT, the acclaimed global financial messaging service, is often criticized for being slow, expensive, and outdated. Yet, it remains a significant player, connecting more than 11,000 banks across 200 countries.

On the other hand, Ripple, with its XRP Ledger (XRPL), offers a contrasting vision. The XRPL has seen a surge in daily activity, averaging around 819 transactions per day, each transaction carrying a value exceeding $280,000. However, the XRPL has not yet secured a meaningful global payments flow, falling short of replacing SWIFT in the cross-border payments market, according to a report from April 2024.

The latest data showing hundreds of high-value daily transactions on the XRPL presents a counter-narrative that the XRP chain is active and functional. Despite this, Ripple continues to struggle with regulatory clarity and global adoption. The company must navigate a complex regulatory landscape while building institutional trust, a challenge exacerbated by years of legal troubles with the US SEC.

Tom Zschach, the Chief Innovation Officer at SWIFT, labeled Ripple as "a dead chain walking" due to concerns about neutral governance structures and regulatory assurances. He questioned why banks would opt to use XRP when tokenized deposits and regulated stablecoins could provide similar solutions without introducing external risks.

Zschach also argued that XRP lacks the legal enforceability and trust needed for global adoption. The SWIFT CIO further contended that XRP is not suitable for use as a settlement asset.

Meanwhile, Whale movements on XRP have remained muted, with no significant increase in transaction counts over $100,000 and $1,000,000 in September.

The competition between Ripple and SWIFT is one of the most defining debates in modern finance, according to a recent analysis shared by a crypto expert. Ripple aims to capture a significant percentage of SWIFT's cross-border transaction volume, but the path to achieving this goal remains fraught with challenges.

In April 2024, Forbes categorized the XRPL as a "ghost chain" and Ripple as a "crypto zombie." This claim was made around the same time that Tom Zschach, the Chief Innovation Officer at SWIFT, criticized Ripple.

As the battle between these two titans continues to unfold, one thing is certain: the future of cross-border payments is being shaped by their competition.

Cryptocurrency XRP is hit by 'phantom blockchain' allegations as massive transactions remain scarce