According to a new analysis released on Monday, the use of Blockchain technology for cross-border settlement would result in considerable cost savings for banks, with savings increasing from $301 million in 2021 to $10 billion in 2030, representing a whopping 3,300 percent increase in cost savings.
According to the analysis, Blockchain use will continue to grow over the next decade, with two billion cross-border transactions predicted to be handled by Blockchain by the year 2030. According to a research from Juniper Research, “Blockchain deployment in cross-border settlement will allow stakeholders to exploit increased payment transparency and traceability, which will be a crucial advantage in an omni-channel payments industry.”
As a result of huge remittance volumes and more friendly regulatory regimes, large trade countries like as the United States and China will reap the greatest cost benefits from the usage of Blockchain technology. One of the primary drivers of implementation in these high-value remittance industries will be the possibility for blockchain technology to achieve important needs such as rapid, trustworthy, and open payments.
“Due to the limitations of outdated systems, international remittance operations are greatly hampered today. The demonstration of cost savings via the usage of Blockchain technology will be crucial for the technology to spread, as will the development of a culture of acceptability for the technology from the top down” Susannah Hampton, a study author, shared her thoughts.
Already, blockchain solutions such as RippleNet and Visa B2B Connect are proving to be much more efficient than older systems in terms of payment processing. It was observed in the research that “the unwillingness of payment stakeholders to modify existing business processes and transition away from legacy systems poses a substantial obstacle to widespread adoption of Blockchain.”
