Swift Facing Criticism From Bitcoin Remittance Companies

Filed in Others by on March 15, 2017 0 Comments
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Swift Facing Criticism From Bitcoin Remittance

One of the most widely known look for financial transaction Loose called Swift was blamed for not being able to fulfill the requirements of the financial markets in the world. There are some who believe that it has turned out to be inefficient to address cross-border payments to be processed real-time settlement of any transaction amount of the tender, payment and settlement risk position .

Global Payments Innovation – A New Initiative

In response to such criticism, Swift launched Global Payments Innovation (GPI), which has the power to make money available on the same day for B2B transfer to fall in the same time zone. It also offers secure remittance information, end to end payment tracking, and better transparency. The first time was in January live this year, and is currently in use by twelve banks, including ING, Danske Bank, Citi, and Bank of China. It is currently focused on the B2B payments. Swift has a commitment to the expansion of cross border payment system.

The efforts to promote global messaging service might be too small or too late in terms solve global payment acceptance, payment and settlement blockage, especially for the customers of the banking sector.

Bitcoin remittance Companies

Both new and old bitcoin remitters are already working on issues to resolve these. They use different blockchains to transfer money in the world. A return business is one of the bitcoin remittance companies that had become commonplace for $ 20.25 million funding. Marwan Forzley, CEO of return business, took the distribution ledgers and blockchain ‘next generation access.

Cross Border Payments in Global Finance Chain

These payments were around $ 26 trillion in 2014, which is around 33 percent of global GDP. Because of inconsistent and non-standardized infrastructure, the money will remain trapped, today system. To send payments across the border, a customer found a transmitter for managing money transfer. The transmitter can transfer payments through contacts with financial institutions in both home and recipient countries. Furthermore, all employees of the center, which adds more complexity of the process. Every bank, involved in conducting the transfer, charges its own service fee and can take 7 days for a process to complete.

The corporate sector in the world is estimated to be $ 15.7 trillion in 2014. They can negotiate fees between 1 to 2 percent of the payment amount. Whereas, small and medium size companies. and to individual transactions can be charged up to 15%. The hidden cost of these transactions makes it difficult for customers who can not afford it.

If a client belongs to the ‘underbanked’ or worthy of the world, he may not be able to find ways to help Simplified cross border payments, for example, taking the service of transnational bank transfer payments using their products.

Efforts made by Bitcoin remittance Companies

Although Swift is committed to bringing justice in cross border payments by GPI, however, it failed to provide help when it comes to customers who can not negotiate fees. On the other hand, the bitcoin remittance companies have attempted to solve this issue in a small-scale. These companies help customers off borderless transactions low and well-controlled cost.

One of the largest bitcoin remittance companies called ‘Bitspark based in Hong Kong. The company believes that it is the best long-term prospects despite the lack of friction. The CEO of the company, George Harrap, said,

“The vast majority of international remittances via banks, but cash money transfer shops. This will not affect how they do business, or transactions. Cost will remain the same as remittance companies form paid anyway, so the possibility of reductions in phone fees does not affect companies who transfer $ 10m transfer to draw down on this measure to small concrete. ”

The problem persists

While Swift’s intention to improve the payment transaction record for institutions in the world, it is possible that innovations inspired by GPI can show up in some blockchain application. For example, HyperLedger Project (a project in which Swift is a member) will continue to cause cross border frameworks in the future.

The CEO of ZipZap, Alan Safahi, managed to raise $ 1.1 million in 2014 to expand the cash to service bitcoin. According to him,

“Let say ZipZap uses a combination of traditional (Swift) bank payment rails and blockchain technologies to get pretty expensive and more flexible transfer option. The Swift ‘GPI’ is primarily for B2B payments, so it is not affect ZipZap’s current work flow. ”

It is mentioned in the Ripple launched GPI than a step to be relevant rather than a step toward modern.

coinbanks platform is a major crypto currencies trading platform that provides the full potential and global changes associated with Bitcoin currency.

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