According to a recent report by Ripple in partnership with the United States Faster Payments Council (FPC), blockchain technology offers the prospect of saving nearly $10 billion for financial institutions by 2030, by reducing the costs associated with cross-border payments.
The economic potential of blockchain
Experts unanimously agree: blockchain technology is the spearhead of faster and more efficient payment systems. But that’s not all! Thanks to its decentralized and secure nature, it can transform the sectors of finance, health, and many others. By eliminating costly intermediaries, it reduces transaction costs and speeds up processes.
According to a report recently published by Ripple, the digital payment network, in collaboration with the United States Faster Payments Council (FPC), blockchain could save financial institutions around $10 billion in cross-border payment costs by 2030.
This study surveyed 300 finance professionals in 45 countries, spanning different sectors such as fintech, banking, media, consumer technology and retail. Among these participants, 97% remain convinced that blockchain will play a key role in facilitating payment systems in the next three years.
Furthermore, almost half of the participants pointed out that the main strength of crypto lies in its ability to reduce payment costs, both domestically and internationally.
” In the survey, more than 50% of respondents believe that the reduction in payment costs – both domestically and internationally – is the main benefit of crypto“, notes the report.
Towards a revolution in the global financial sector
With the rise of e-commerce and a focus on international markets, cross-border payments are bound to experience significant growth by 2030. According to the reportglobal international payment flows are expected to reach $156 trillion, with a compound annual growth rate of 5%.
However, despite general optimism about the future role of digital currencies, survey participants had mixed opinions on when a majority of merchants would embrace crypto payments.
Around 50% of respondents expect most merchants to accept these payments within the next three years. In contrast, the Middle East and Africa show greater confidence in adoption as early as next year.
Ripple’s report comes at a time of growing interest in Digital Central Bank Currencies (CNBCs). According to recent research by the Bank for International Settlements (BIS), up to 24 MNBCs could be circulating within the next six years.
As the e-commerce landscape continues to evolve, the growing adoption of cryptos becomes inevitable. With the potential to save up to $10 billion by 2030, blockchain is set to shape the future of the international financial industry.
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