FinTech firms eye blockchain technology for cheaper and faster cross-border payments
In the years to come, blockchain technology may provide financial benefits and much-needed revitalization to the global FinTech industry. There might be US$10 billion in savings in the banking industry over the next seven years if distributed ledger technology, or blockchain, is used. In collaboration with the US Faster Payments Council (FPC), Ripple conducted a poll that resulted in the results that were then made public.
Ripple and the FPC questioned 300 people working in the banking industry from about 45 different countries. Directors of FinTech firms, CEOs of companies, and financial experts were among the attendees. The majority of respondents (97%) believe that blockchain technology has the potential to enhance online payment systems, particularly for the handling of international payments.
According to the research, people with ties to the banking industry are now unhappy with legacy rails for cross-border payments.
Blockchain transactions are maintained as discrete pieces of data and dispersed throughout the network’s many blocks. Compared to the high expenses of maintaining modern servers and data centers, this keeps the storage of critical information safer against hackers and cybercriminals while also keeping the process affordable.
Additionally, because the history of transactions recorded on blockchains cannot be altered, the financial records are kept visible and impenetrable without incurring additional costs.
These explanations explain why, despite their reservations about adopting cryptocurrency, governments all over the globe are stepping up their efforts to circumvent CBDCs.
CBDCs are the digital representation of fiat currencies built on blockchain networks. They are anticipated to speed up and secure online payments while eliminating reliance on physical notes, frequently used for illicit, unreported operations like money laundering.
The blockchain-based crypto industry has maintained support from the world’s investors despite being unstable and uncontrolled. The industry’s market valuation is approximately US$1.18 trillion, down from around US$3 trillion around November 2021.
52% of global shops are expected to start taking cryptocurrency as payment in the next one to three years, according to Ripple research.
Most locations where merchants are anticipated to start taking cryptocurrency payments are the Middle East and Asia-Pacific, where 64% and 50%, respectively. With the EU approving the MiCA crypto law for the region, European traders (58 percent) also aim to open up the market for cryptocurrency payments.
