In interviews and commentary in late August 2025, Cardano founder Charles Hoskinson argued that legacy financial systems like SWIFT are “going to die” because they are too complex and inefficient to compete with modern blockchain alternatives. He predicts a coming “system reset” of global finance as decentralized competitors gain traction and traditional institutions are forced to adapt or become obsolete. Hoskinson’s reasoning is based on a direct comparison of the cumbersome, trust-dependent nature of SWIFT with the efficient, cryptographically-secure, and globally-accessible nature of blockchain technology.
The Systemic Flaws of SWIFT
Hoskinson points out weaknesses in the legacy financial system that he believes will lead to its decline:
- Legacy inefficiency: Traditional wire transfers involve multiple disclosures, manual fraud checks, and time-consuming verifications. The process is outdated compared to near-instant blockchain transactions.
- High trust requirement: Traditional finance relies on trust in centralized intermediaries. Despite verification, the system is vulnerable to fraud and burdens users. Blockchain operates on a “trustless” model where security is based on cryptography.
- Slow and expensive transactions: Cross-border payments via SWIFT can take days and incur high fees. Blockchain eliminates middlemen, offering near-instant settlement at a lower cost. Hoskinson believes these costs and speeds will become non-viable.
- Outdated technology: The current financial infrastructure is seen as a “broken system”. Hoskinson believes banks and networks must adopt blockchain to avoid extinction.
Blockchain as a Superior Alternative
Hoskinson sees blockchain architecture providing a superior user experience and greater efficiency:
- Enhanced security and transparency: Blockchain’s ledger provides security and transparency. Transactions are permanently recorded and verifiable, making it resistant to fraud.
- Seamless user experience: Blockchain solutions offer a simpler user experience. Hoskinson contrasts the complex wire transfer process with the ease of a transfer from a multi-signature wallet.
- Algorithmic regulation: Smart contracts on the blockchain can enforce compliance automatically, streamlining processes and reducing fraud.
- Privacy and interoperability: Hoskinson’s vision includes a “fourth generation” of blockchain focusing on privacy, identity, and interoperability. Technologies like Cardano’s “Midnight” privacy stack would allow for anonymous transactions while permitting selective disclosure for regulatory compliance.
The Ongoing Institutional Shift
The transition away from legacy systems is underway, driven by competitive pressure and institutional adoption:
- Institutional adoption: Financial giants like JPMorgan are experimenting with blockchain for payments to enhance efficiency.
- SWIFT’s defensive integration: SWIFT is exploring partnerships with blockchain companies like Chainlink to improve its infrastructure. In 2025, SWIFT confirmed it would integrate with blockchain networks to support tokenized assets, acknowledging the need to adapt.
- Shift toward decentralized exchanges (DEXs): Hoskinson argues that DEXs are superior to traditional exchanges, offering 24/7 global liquidity, zero custody risk, and transparent settlement.
