Banks are expected to rely more heavily on blockchain; – Ripple

A new study by payments company Ripple indicates that financial institutions can save huge amounts of money by moving their systems to blockchain-based rails.

The study, conducted by Ripple in conjunction with the US Council on Faster Payments, surveyed 300 executives working in the payments industry in 45 countries.

According to the survey, 97% of respondents believe that blockchain technology and cryptocurrencies will enable faster payments in the next three years.

According to the study, digital assets on blockchain are around 80% less expensive than using conventional financial channels. The latest technologies are also quicker, more transparent, and provide more process details. In accordance with the estimate, businesses may save $10 billion by 2030 by implementing blockchain technology.

Global cross-border payment flows are expected to reach $156 trillion, growing at a compound annual growth rate of 5%.

The Ripple report also shows that survey participants are upbeat about the adoption of cryptocurrency-based payment solutions for merchants, notably in the Middle East and Africa.

Respondents see other use cases for crypto payments, with over 50% of executives surveyed believing that most merchants will accept crypto payments within a short span. Leaders from the Middle East and Africa seem particularly optimistic.

27% believe they will cross that threshold next year. Optimism in these markets may stem from growing demand for broader financial accessibility and inclusion. This includes other crypto payment solutions, such as mobile payments and cryptocurrencies. Central bank digital currency (CBDC)

Recall that, Ripple had been embroiled in a high-risk legal battle with the SEC for three years. The regulator has accused Ripple and two of its executives of conducting an illegal $1.3 billion XRP offering.

Ripple refutes these claims. The blockchain startup argues that XRP should not be classified as a security and treated as a commodity. Ripple does not meet the Howey test criteria for investment contracts. The Southern District Court of New York has ruled that XRP programmatic sales to retail investors is not a security.

However, the court considered the organization’s XRP sale a security. Therefore, Ripple’s legal troubles are not over yet.

The decision partly in favor of Ripple will alleviate concerns about the adoption of XRP and several other digital assets in the United States. Security issuance, sale, and trading are strictly regulated in the country.

Ekene Njoku

I am a passionate blogger, graphics designer, web designer and information researcher. Also, a media marketer

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