- A recent report by Ripple reveals that blockchain technology could save financial institutions around $10 billion in cross-border transaction costs by 2030.
- An overwhelming 97% of surveyed finance professionals across 45 countries believe that blockchain will critically influence faster payment systems within the next three years.
Enthusiastic Endorsement of Blockchain from Financial Professionals
Ripple, a leading digital payments network, in conjunction with the United States Faster Payments Council (FPC), recently released a report underscoring the transformative potential of blockchain. The report surveyed 300 professionals spanning numerous sectors – from fintech to retail – across 45 countries. It concluded that blockchain technology could lead to approximate savings of $10 billion for financial institutions in cross-border payment costs by the year 2030.
Within this diverse group of respondents, which included analysts, CEOs, and directors, there was a striking consensus: an overwhelming 97% believed in the critical role of blockchain in enabling swifter payment systems in the coming three years. Moreover, a significant portion – over half of the participants – acknowledged the cost-saving potential of cryptocurrencies as their foremost benefit.
Results show that global payments leaders are dissatisfied with legacy rails for cross-border payments.
— Ripple (@Ripple) July 28, 2023
The report noted,
“Over 50% of respondents believe that lower payment costs — both domestically and internationally — is crypto’s primary benefit.”
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Endorsing this view, Juniper Research, a fintech analysis firm, points to the enormous potential of blockchain in significantly reducing costs for banks conducting global transactions, estimating the savings to reach $10 billion by 2030.
Exploring the Future of Cross-Border Payments and Merchant Adoption
The report draws attention to the increasing significance of cross-border payments. As the e-commerce sector expands and businesses shift focus to international markets, the volume of these transactions is expected to surge. According to the report,
“Global cross-border payment flows are expected to reach $156 trillion — driven by a 5% compound annual growth rate.”
However, the survey shows a split in opinion regarding the timeline for mainstream adoption of digital currency payments by merchants. While half the participants expect most merchants to embrace crypto payments within the next three years, opinions vary on whether it will happen in the next year.
Geographically, participants from the Middle East and Africa show the highest confidence, with 27% expecting majority merchant adoption of crypto payments within a year. Conversely, only 13% of leaders in the Asia-Pacific region shared this view. Despite this discrepancy, a notable 17% of participants globally believe such adoption could materialize within the next year.
These findings resonate with recent research from the Bank of International Settlements (BIS), suggesting the potential circulation of 24 central bank digital currencies (CBDC) within the next six years.
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