Ripple believes financial institutions could save $10B by 2030 utilizing blockchain
July 30, 2023 5:22 PM
Over the next three years, 97% of the 300 financial professionals surveyed from 45 countries expect blockchain to play a significant role in facilitating faster payment methods.
A recent study estimates that by 2030, financial institutions might save $10 billion in transaction fees associated with international payments by using blockchain technology.
The report→, released on July 29 by digital payments network Ripple in partnership with the United States Faster Payments Council (FPC), questioned 300 finance professionals from 45 nations across industries including financial technology, banking, media, consumer technology, and commerce.
Within the next three years, 97% of the analysts, directors, and CEOs who were surveyed are confident that blockchain technology would play a major role in allowing quicker payment systems.
Furthermore, more than half of those surveyed thought that the major benefit of cryptocurrencies is the ability to reduce expenses.
"According to the poll, over 50% of those who responded agreed that reduced transaction costs — locally as well as globally — remain crypto's major benefit."
According to the survey, fintech research firm Juniper Research expects that the usage of blockchain in worldwide transactions would result in significant cost reductions for financial institutions over the course of the next six-year period.
"This idea is supported by Juniper Research, which claims that blockchain has the potential to save financial institutions carrying out international transactions a large amount of money – $10 billion by 2030, according to their estimates."
Cross-border payments are projected to increase in the future years as the e-commerce sector evolves and enterprises emphasize international markets. According to the analysis, the volume of cross-border payment transactions is expected to skyrocket by the year 2030.
However, there was disagreement among participants about when the bulk of merchants will accept digital currency payments.
While 50% of those polled were sure that most merchants would accept cryptocurrency payments over the next three years, there was disagreement on whether this could happen within a year's time.
Report from Ripple and US Faster Payments Council. Credit: Ripple
With regard to the likelihood that most merchants will accept cryptocurrency payments over the next year, respondents from the Middle East and Africa were the most optimistic (37%).
Meanwhile, Asia-Pacific leaders were the most pessimistic, with only 13% expecting the same timeframe. However, 17% of the 300 poll participants worldwide believe that such acceptance will occur within the next year.
This comes after a study by the Bank of International Settlements (BIS) reported that as many as 24 central bank digital currencies (CBDC) might be in circulation over the next six years.
According to a BIS report released on July 10 that questioned 86 central banks between October to December 2022, 93% of central banks are conducting studies on CBDCs, and there might be up to 15 retail and 9 wholesale CBDCs in operation by 2030.