A new study by payments firm Ripple says that financial institutions could save astronomical amounts of money by switching their systems over to blockchain-based rails.
The study, which was conducted by Ripple in collaboration with US Faster Payments Council, polled 300 leaders working in the payments industry across 45 countries.
[adinserter block="1"]The poll reveals that 97% of the respondents believe that blockchain technology and cryptocurrency will have a significant or very significant role in enabling faster payments within the next three years.
The report says that using crypto assets on blockchains is about 80% cheaper than traditional financial rails. The nascent technology is also faster and more transparent, with more information in regard to the process.
Institutions could save roughly $10 billion by 2030 by simply using blockchain technology for their systems, according to the report.
“For respondents, blockchain and crypto technology holds particular promise with respect to transforming cross-border payments. Juniper Research supports this notion, pointing to blockchain’s potential to significantly increase savings for financial institutions conducting cross-border transactions – an estimated $10 billion by 2030 thanks to fast, reliable and transparent payments settlement. Observers shouldn’t underestimate the transformative opportunity here: global cross-border payment flows are expected to reach $156 trillion – driven by a 5% compound annual growth rate.”
Ripple’s report also says that survey respondents, particularly in the Middle East and Africa, are optimistic about the adoption of crypto-based payments systems for merchants.
“Respondents see additional crypto-enabled payments use cases, with over 50% of surveyed leaders believing that most merchants will accept crypto payments within one to three years. Middle East and African leaders appear particularly bullish: 27% believe that they’ll cross this threshold within the next year. Optimism in these markets may stem from a growing appetite for broader financial access and inclusion, including other crypto-enabled payment solutions like mobile payments and central bank digital currencies (CBDCs).”
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