According to a new study released on July 29 by Ripple, a leading crypto firm, and the US Faster Payments Council (FPC), blockchain technology is poised to revolutionize the international financial system, potentially saving up to $10 billion in cross-border payment costs by 2030 if embraced by global financial institutions.
The study, based on the perspectives of 300 financial experts from 45 countries, including professionals from fintech, traditional banking, media, consumer technology, and retail sectors, indicates a resounding vote of confidence in the role of blockchain technology in enabling faster payment methods shortly. A staggering 97% of analysts, executives, and CEOs polled believe blockchain will play a significant part in achieving expedited transactions.
Notably, more than half of the respondents highlighted the most crucial advantage of cryptocurrencies as their ability to cut domestic and international expenses. The survey pointed out that over half of the participants saw lower payment fees as the primary benefit of adopting crypto.
Juniper Research, a prominent fintech analytics company, corroborated this finding, predicting that blockchain adoption for cross-border transactions could save banks billions annually over the next six years. The potential savings of up to $10 billion on cross-border transaction costs have been endorsed by Juniper Research and are touted in the study.
Despite optimism about the potential benefits of crypto payments, the study found mixed predictions among respondents regarding the timeframe for traditional businesses accepting digital currencies.
While 50% of the experts believe that most retailers will embrace crypto payments within the next three years, the expectations for actual adoption vary from very optimistic (within the next year) to more pessimistic (within the next three years).
Geographical differences in confidence levels were also evident, with respondents from the Middle East and North Africa (MENA) displaying the most enthusiasm (27%) for businesses accepting cryptocurrencies as a payment method within the next year. In contrast, only 13% of experts in the Asia-Pacific region (APAC) shared this outlook, while 29% of leaders in the Americas anticipated such rapid adoption.
Despite these regional variations, 17% of the global respondents remain optimistic about the widespread adoption of cryptocurrencies as a payment method within the next year.
The study by Ripple and the US Faster Payments Council underscores the transformative potential of blockchain technology in the financial sector, paving the way for speedier, cost-effective cross-border transactions.
While experts are optimistic about the advantages of cryptocurrencies in reducing payment expenses, the timeline for widespread adoption remains a point of contention among respondents from different regions. Nevertheless, the study highlights a growing consensus that blockchain is set to play a significant role in shaping the future of finance worldwide.
Source: https://www.cryptopolitan.com/ripple-study-blockchain-poised-to-cut-10-billion-in-cross-border-payment-costs-by-2030/