Banks change SWIFT to blockchain system

Baku. 22 December. REPORT.AZ/ Blockchain system may replace the Society for Worldwide Interbank Financial Telecommunications (SWIFT) system.

Report informs referring to the Haberler, more than 100 banks will reduce transfer time for international payments from 3 days to 10 minutes by using the digital currency base of Ripple.

Among these financial institutions there is also a prestigious bank Akbank owned by Sabancı Holding of Turkey. Tolga Ulutaş, Executive Vice President of Direct Banking at Akbank said that blockchain system will positively impact on the bank's profit. The decrease of expenses will also impact on customers.”

Among the banks using Ripple there are such famous banks as UBS, Unicredit, BBVA, Credit Agricole and Mizuho.

According to experts, each bank that carry out 1 million transactions a year and transfer $ 5 billion will save $ 6.86 from each transaction and in total will save $ 6.86 million. As higher the amount, the more money banks will save.

For instance, the bank transferring $100 billion with 1 million transactions may save $ 71.5 million.

Though the price of Ripple at today’s crypto-currency auctions decreased in general, it increased by 28% to $ 1.25. It has market capital of $ 5 billion and 38.7 billion “coins” in circulation.