According to a new report by Juniper Research, the introduction of the blockchain in cross-border settlements will lead to increasing cost savings for banks. From $ 301 million in 2021 to 2030, that amount will rise to $ 10 billion. The introduction of blockchain in cross-border clearing will allow stakeholders to take advantage of better payment transparency and traceability, which is a critical advantage in the omnichannel payment market.
Blockchain in Financial Services: Key Opportunities According to the Vendor Strategies & Market Forecasts 2021-2030 report, major trading countries such as the United States and China can achieve the greatest cost savings by using a blockchain, aided by a massive remittance volume and an increasingly favorable regulatory environment. The blockchain potential to meet the critical requirements for fast, reliable and transparent payments in these high-value remittance markets will be a major driver of acceptance.
Blockchain solutions such as RippleNet and Visa B2B Connect are already they still offer significant payment efficiency over traditional systems. In addition, Ripple already complies with ISO 20022, which has put it in a strong position to adopt the blockchain as part of international payment standards.
Juniper Research expects the adoption of the blockchain to increase in the next decade. It is expected to engage in 2 billion cross-border transactions by 2030.
A major obstacle to the widespread introduction of the blockchain is the reluctance of payment industry stakeholders to change established business practices and move away from legacy systems. Clear communication on the benefits of the blockchain and the investment needed to implement it will be key to involving stakeholders.
According to research author Susannah Hampton, current international remittance processes are severely constrained by the old systems. Demonstrating the cost savings that can be achieved using a blockchain will be critical to the diffusion of technology, as will the culture of technology adoption from top to bottom.
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