According to research, the use of blockchain technology in cross-border payments will save global banks $10 billion by 2030.
Using blockchain technology, banks will save $10 billion (£7.35 billion) on cross-border payments by 2030.
According to a Juniper Research report, the technology will also increase payment transparency and traceability.
According to Juniper, blockchain will save $301 million in cross-border settlement costs this year, but that saving will increase by over 3,000% over the next decade.
According to the report, blockchain-based cross-border payment settlement services such as RippleNet and Visa B2B Connect save money when compared to legacy technologies.
Juniper predicted that blockchain adoption would accelerate, resulting in two billion cross-border transactions using blockchain technology by 2030.
However, the research firm stated that many banks were hesitant to move away from legacy systems and that the benefits of the technology must be communicated to key decision-makers at financial institutions.
“Current international remittance processes are severely hampered by legacy systems,” Juniper senior analyst Susannah Hampton, who authored the study, said. “Proof of cost savings through blockchain use will be critical for the technology to spread, as well cultivating a top-down culture of acceptance for the technology.”
According to Juniper Research, the United States and China will see the greatest cost savings, but the United Kingdom has an opportunity to create value through emerging technology.
PwC estimated last year that by supporting financial inclusion through cross-border and remittance payments, £13 billion in value could be created in payments and financial services, including digital currencies, in the UK by 2030.
Blockchain is being used in industries other than finance, including healthcare, government, manufacturing, finance, logistics, and retail. According to the PwC report, the UK could receive a £57 billion share of a £1.3 trillion boost to the global economy by the end of this decade as a result of the widespread adoption of blockchain-based technologies beginning in 2025.
The distributed ledger technology, best known in the financial services sector for its role in making bitcoin a reality, has been identified as an efficient and effective means of tracking and tracing goods and services, which PwC estimates could be worth £30 billion to the UK economy over the next decade.
For example, the global air industry’s ongoing investigation into how blockchain can improve efficiency has unearthed more than £300 million in potential savings by using the technology to track and record cargo as it moves from producer to customer.