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RippleNet as a Tool for Handling International Transfers
Abstract
Purpose: The article aims to evaluate RippleNet as a tool for processing cross-border
payments, with particular emphasis on its ability to provide fast and predictable settlement,
as well as its potential role in the modernization of global payment systems.
Problem and research method: Traditional models based on the SWIFT system, which
serves only as a communication network and requires settlement within domestic payment
infrastructures, are associated with high costs, low transparency, and long settlement
times. In response to these limitations, blockchain technology has begun to be applied in
cross-border payments. This study uses data from the public XRP Ledger (XRPL) to analyze
settlement time, the structure and topology of the payment network, the concentration of
activity, and transaction dynamics. The empirical ..indings are then combined with insights
from the literature and presented in the form of a SWOT analysis.
Results: RippleNet enables quasi-instant settlement – the average transaction ..inalization
time is 3.87 seconds, with maximum delays not exceeding 9 seconds. At the same time,
network activity is highly concentrated, with a small number of nodes and communities
accounting for the majority of transaction volume, as con..irmed by the calculated Gini
coef..icient (0.969). The analysis shows that RippleNet functions in practice as a scale-free
network, in which institutional hubs play a dominant role. The main bene..its of the system
include speed, cost reduction, and transparency, while key limitations involve regulatory
risks and heavy reliance on a small group of dominant participants.
Conclusions: RippleNet demonstrates characteristics that make it an innovative solution
for cross-border payments and a potential technological bridge in the context of CBDC
integration. However, its broader adoption will depend on regulatory adaptation, addressing
the problem of activity concentration, and the readiness of ..inancial institutions to implement
distributed settlement systems.
Keywords:
Swift, Ripple, Blockchain, Cryptocurrency, Remittances, Cross-border payments, XRPJEL Codes
G21, E42, M15Details
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This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.