A groundbreaking study conducted by Ripple in collaboration with the US Faster Payments Council has unveiled the immense cost-saving potential of blockchain technology for financial institutions. Out of the 300 leaders in the payments industry across 45 countries who participated in the study, a staggering 97% expressed their belief that blockchain and cryptocurrency will have a substantial impact in facilitating faster payments within the next three years.
According to the report, adopting blockchain-based rails for financial transactions can be approximately 80% cheaper than traditional financial systems. Not only is the nascent technology more cost-effective, but it also offers greater speed and transparency, providing more detailed information about the entire payment process.
Ripple’s report suggests that by 2030, institutions could save a staggering $10 billion by simply leveraging blockchain technology for their systems. The transformative potential of blockchain is especially evident in cross-border payments. Juniper Research supports this notion, highlighting blockchain’s capacity to increase savings for financial institutions conducting cross-border transactions.
The study also reflects optimism among respondents, particularly in the Middle East and Africa, about the adoption of crypto-based payment systems for merchants. Over 50% of surveyed leaders believe that most merchants will accept crypto payments within one to three years. In these regions, the optimism may stem from a growing appetite for broader financial access and inclusion, including other crypto-enabled payment solutions like mobile payments and central bank digital currencies (CBDCs).