Cryptocurrencies and digital currencies are gaining increasing popularity globally.

According to CEO Michael Miebach of Mastercard, SWIFT may be gone in five years. The Society for Worldwide Interbank Financial Telecommunications (SWIFT) system is referred to as SWIFT.  Mastercard is a member of SWIFT.

Miebach says that the payments industry is changing rapidly and that SWIFT needs to adapt or risk becoming obsolete. He states that “What we see is that everything that has been built in the last 40 years is now being challenged.

It is presently a vast communication network. That banks and other financial institutions use to conduct fast, accurate. And secure information transmission, including money transfer instructions.

The SWIFT network connects more than 11,000 financial institutions in over 200 countries and territories. SWIFT handles more than $6 trillion in cross-border payments every day.

Mastercard is one of the largest users of SWIFT services. “Miebach went on to say that “The way that we move money today is slow, it’s inefficient, and it’s expensive.

So there is a big opportunity to move money much faster, much more efficiently, and at a lower cost. And that is really what we are after.”

During the World Economic Forum’s annual meeting, the Mastercard CEO was a panelist on central bank digital currencies. He said no to whether he thinks SWIFT will still exist in five years when asked by an audience member.

His response sent a shock wave across the room, even though smiling when giving his answer. Meibach says;

“If you can get a payment with all the data attached that you need as a company […] the cost savings of that in addition to a payment cost that is lowered, and the overall productivity boost, we can expect if we do this well, that’s the real goal here.”

Many people took Miebach’s remark seriously, but a Mastercard representative downplayed the significance of his remarks in a statement issued after the meeting. According to Mastercard;

“Let us clarify the purpose of Michael’s on-stage statement, which isn’t as easy as a yes or no answer. He was merely repeating what SWIFT has stated previously – their operations continue to develop. It will not be in its current form in the future. They are adding more features and moving beyond being simply a messaging system.”

Blockchain projects such as Ripple aim to provide strong competition to the existing global financial system. Ripple and its technologies allow for cheaper, faster, and more secure money transfers across borders.

Cross-border transactions are easier, faster, and less expensive when using blockchain technology. Blockchain solutions give the underbanked and unbanked countries in the world access to financial services.

The world’s largest credit card company, Mastercard, has been diving into the blockchain and cryptocurrency sector for several years. The company has been filing many blockchain and crypto-related patents.

Mastercard is investigating blockchain and cryptocurrency solutions to make global payments faster.

Mastercard is already working with Ripple on a pilot program for cross-border payments. SWIFT is currently the dominant player in the global payments space, but that may not be the case in five years.

“I think SWIFT is going to have a blockchain competitor in the next two to three years,” says Michael Miebach, Mastercard’s CEO. “It’ll come from either us, or American Express, or somebody else.”

Mastercard’s CEO, Michael Miebach, believes that SWIFT may not be around in five years. SWIFT is the current system used for international money transfers. SWIFT is slow and outdated. It can take days for a SWIFT transfer to go through.

Do you share Miebach’s view? It will be nice to let us know!

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James Atkins

I have been writing copy for blockchain-related projects since 2017. I understand the importance of being able to communicate clearly and effectively with both technical and non-technical audiences. By leveraging my understanding of the crypto industry trends, I can help increase adoption in this rapidly evolving landscape.