The interbank payment system provider SWIFT called cryptocurrencies useless and unstable and compared it with a yoyo toy. According to SWIFT, only Facebook's Libra can pose slight competitive threat.

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) believes that cryptocurrencies are unstable, useless, and their price jumps like a yoyo toy. This opinion was expressed by SWIFT representatives at a briefing in London earlier this week, according to an article published by FXStreet.

“They go down in value like a yoyo, they’re useless and unstable. And even if crypto companies do make is stable, it’s still a basket of currencies.”

At the briefing, SWIFT representatives recognized the current weak points of the system, which brings together 11,000 banks and financial institutions around the world. First of all, they spoke about issues concerning transaction speed and time.

“If you want to send a payment from Australia to China after midday, you instantly have a 12-hour delay because of opening hours.”

Despite this, SWIFT does not feel any threat from alternative payment systems, for example, such as the Ripple xRapid solution.

The only cryptocurrency that can pose any competitive threat is Facebook's Libra. But even it can only have a short-term impact, SWIFT believes.

The idea to replace SWIFT with alternative decentralized system is often voiced out by the governments of those countries that, due to international economic sanctions, do not have full access to the interbank payment network. Thus, Iran is reportedly thinking about creating its own analogue of cryptocurrencies in order to bypass US financial sanctions.