Everybody claims that their blockchain would become dollar killer some day. When we look at the congestion and the various scaling issues we realize how shortsighed our visions are on the public deentralized blockchain.
A lot of things that crypto is trying to achieve has been already done by the SWIFT payment network. And it has been pushing the crypto and blockchain for some time now. Especially SWIFT looks more strong during the financial recession than the crypto which is kind of defeating it on a scale.
So let's discuss what are some things that make SWIFT payments a kryptonite for the blockchain and crypto.
Strong Bank Networks in SWIFT with Blockchain
SWIFT has around 11k bank networks across 200 nations. So SWIFT literally has presence in almost every nation out there. Even those with the crypto illiteracy has the SWIFT banks in their nations which includes Afghanistan, few African nations etc which are not the tech savvy nations.
Most of the banks in the SWIFT are also putting their transactions in the public blockchain and private blockchain. The Stellar Lumen network has been used in some of the SWIFT banks across world for the public ledger purpose.
So any singular chain that decides to take down the SWIFT has to take down all the local banks and take their load on itself along with the job to educate the local banks and system to ditch SWIFT, which in short is - Impossible.
SWIFT as a Weapon
A lot of people who are using the SWIFT in the 3rd world nation are kind of under control of the UN and the top imperial nations. So the cashflow towards them has been under monitor of the press in the imperial nation along with the UN data teams.
When any country gets sanction then the SWIFT is the first one that acts there. It suspends the operations and the funds. And this makes the country bend on it's knees and cry for the help in global forum. We have seen this happening with nations like Pakistan, Afghan and many african nations since 80s.
SWIFT used in this fashion is nothing but a weapon tactic. Which in short gives the power to the imperial groups to control the world economy. Which is not easy to beat for Bitcoin and Ethereum.
Zero Adoption and Consumer Exposure
SWIFT is a necessity and not something that requires adoption. If your nation wants to connect with other nation, SWIFT is something they can't ignore. You can ignore the crypto but ignoring SWIFT would isolate your nation on FIAT conversion side.
SWIFT does not require the consumer exposure unless consumer wants to manually send the funds from one nation to another. That too again is moderated and monitored by the cenral team and the local national team on the purpose of funds movement.
Crypto can't beat this as the FIAT level exchanges is where CRYPTO can't help the local public.
As you can see SWIFT handles large number of transaction and with blockchain support it can even have the ledger support for it's past and recurring transactions. And it would be searchable archive being in a blockchain.
Considering how the centralized systems like SWIFT are adopting the blockchain leaving the decentralized part aside, I feel they are harder to kill with each year passing by.
What do you think about SWIFT vs Crypto?
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Crypto will not be a killer for the USD simply because that is no longer a currency. Rather it is a unit of measure.
Thus, with stablecoins, we will enhance the reach of the USD, but not the currency since we are in a digital world anyway. Outside of that, crypto is a capture of value. This is the key.
Therefore, I see crypto doing more to take out the stock market.
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