Cost savings will see 3,300% boost by 2030
According to Juniper Research, the deployment of blockchain for cross-border settlement is expected to drive increasingly significant cost savings for banks, rising from $301 million in 2021 to $10 billion in 2030.
Blockchain implementation in a cross-border settlement will enable stakeholders to leverage improved payment transparency and traceability. Thta’s a critical advantage in an omnichannel payments market.
The report found that the US and China will see the biggest cost savings from blockchain use, aided by high remittance volumes and increasingly favourable regulatory environments.
In these markets, the potential for blockchain to meet the critical requirements of fast, reliable, and transparent payments will be a key driver of adoption.
As a result of an expansion in the number of integrations with major payment players across broad trade corridors, blockchain solutions such as RippleNet and Visa B2B Connect are already offering significant payment efficiencies compared with legacy systems. Additionally, Ripple has joined the ISO 20022 Standards Body; placing it in a strong position to establish blockchain as part of international payment standards.
The reluctance from payment stakeholders to change established business practices and shift away from legacy systems represents a significant barrier to widescale blockchain adoption. Clear communication of the benefits of blockchain against the investment required for implementation will be crucial to stakeholder buy-in.
We’ve reported that Klarna is now available in Ireland.