A recent study by Ripple payments company, shows that financial institutions could potentially save immense amounts of money by transitioning their systems to blockchain-based rails.
Institutions could save $10 billion via blockchain
The study, done in collaboration with the US Faster Payments Council, surveyed 300 leaders in the payments industry across 45 countries.
Results indicate that 97% of respondents believe that blockchain technology and cryptocurrency will play a significant or very significant role in facilitating faster payments within the next three years.
The report states that utilizing crypto assets on blockchains is approximately 80% cheaper than traditional financial rails.
Additionally, blockchain technology offers faster and more transparent processes, with increased information available about the transaction.
The report estimates that institutions could save up to $10 billion by the year 2030 by adopting blockchain technology for their systems.
“For respondents, blockchain and crypto technology holds particular promise with respect to transforming cross-border payments.”
The notes continued and said the following:
“Juniper Research supports this notion, pointing to blockchain’s potential to significantly increase savings for financial institutions conducting cross-border transactions – an estimated $10 billion by 2030 thanks to fast, reliable and transparent payments settlement.”
It ha also been revealed that:
“Observers shouldn’t underestimate the transformative opportunity here: global cross-border payment flows are expected to reach $156 trillion – driven by a 5% compound annual growth rate.”
Ripple in the news
Ripple Labs has joined forces with SUPER HOW?, a research and development company based in Northern Europe, to conduct experiments on crypto assets and central bank digital currencies (CBDCs).
Their collaboration, called the Axiology project, is focused on creating a tokenized securities and settlements infrastructure on the XRP Ledger.
The aim of this project is to test and introduce digital assets, including stablecoins and CBDCs, to increase regulators’ trust in the safety and security of these revolutionary digital assets.
Axiology is a tokenized securities trading and settlement platform that enables various layers of existing capital market infrastructures to coexist on a single technology layer, resulting in improved operational efficiencies, synergies, and new business models.