Blockchain Technology Could Save $10 Billion in Cross-Border Payments, Report Shows
A joint report by Ripple and the US Faster Payments Council reveals that blockchain technology could save financial institutions approximately $10 billion in cross-border payment expenses by 2030. The report, based on a survey of 300 finance professionals from 45 countries, highlights the potential of blockchain technology to speed up payment systems, reduce costs, and enhance transaction velocity within the next three years.
Key Points:
1. Significant Cost Savings: Over 50% of respondents in the survey identified lower payment costs as the primary advantage of using cryptocurrency for both domestic and international transactions. Nearly 90% acknowledged some cost improvements for international payments, while 75% expected cost benefits for domestic transactions.
2. Potential for Cost Reductions: A recent report by Juniper Research further confirms that banks that integrate blockchain technology within the next six years could save costs.
3. Ripple’s Role in Cross-Border Payments: John Deaton, a notable lawyer representing XRP holders in the Ripple vs. SEC lawsuit, highlighted Ripple’s involvement in promoting the use of crypto for cross-border transactions since 2015. This underscores the company’s commitment to developing digital currencies for effective cross-border transactions.
Closing Paragraph (Hot Take):
The increasing acceptance of blockchain technology in the finance industry is paving the way for significant cost savings in cross-border payments. As more financial institutions recognize the benefits of using cryptocurrency for international and domestic transactions, the potential for cost reductions becomes evident. Ripple’s ongoing efforts to promote the use of crypto in cross-border payments since 2015 showcase their commitment to advancing the efficiency and affordability of global transactions.