The deployment of Blockchain technology for cross-border settlement will drive significant cost savings for banks, rising from $301 million in 2021 to $10 billion in 2030, a whopping 3,300 per cent growth in cost savings, a new report showed on Monday.
The report forecasts Blockchain adoption to increase over the next decade, with an expected two billion cross-border transactions facilitated by Blockchain in 2030.
“Blockchain implementation in cross-border settlement will enable stakeholders to leverage improved payment transparency and traceability, a critical advantage in an omni-channel payments market,” according to the report from Juniper Research.
Large trading nations, such as the US and China, will see the biggest cost savings from Blockchain use, aided by high remittance volumes and increasingly favorable regulatory environments.
In these high-value remittance markets, potential for Blockchain to meet critical requirements of fast, reliable, and transparent payments will be a key driver of adoption.
“Current international remittance processes are severely constrained by legacy systems. Proof of cost savings through Blockchain use will be critical for the technology to proliferate, fostering a culture of acceptance for the technology from the top down,” said research author Susannah Hampton.
Blockchain solutions such as RippleNet and Visa B2B Connect are already offering significant payment efficiencies compared with legacy systems.
“The reluctance from payment stakeholders to change established business practices and shift away from legacy systems represents a significant barrier to wide-scale Blockchain adoption,” the report noted.