Report: Savings by Banks Using Blockchain to Grow 3K%

Cost savings for banks using Blockchain technology in cross-border settlements will grow by 3,330% by 2030, according to a new report from Juniper Research.

The report, released Monday (Nov. 8) shows those savings rising from $301 million in 2021 to $10 billion in 2030. It also predicts an increase in Blockchain adoption over the decade, with an estimated 2 billion cross-border transactions carried out 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.

The U.K.-based firm says large trading nations like China and the U.S. will see the biggest savings, helped along by high remittance volumes and increasingly relaxed regulations. In these markets, the potential for Blockchain to meet the key requirements of fast, transparent and trustworthy payments will be a chief factor in adoption.

“Current international remittance processes are severely constrained by legacy systems,” said research author Susannah Hampton. “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.”

Juniper says Blockchain solutions like RippleNet and Visa B2B Connect already offer substantial 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.

Read more: Banks Understand Crypto’s B2B Potential But Will Take ‘Baby Steps’ All the Way

Widespread adoption of cryptocurrencies won’t happen overnight, said Liquid Group CEO Jeremy Tan in an interview with PYMNTS last month. Tan said it’s hard to come up with a timeframe, as banks tend to be more cautious than other private sector investors in Blockchain-backed cryptos.

“There are different segments that need to be catered for, and I don’t think there’s going to be one single regulatory framework or roadmap that covers everything,” Tan said. “It’s a learning process, and there are a lot of very intelligent people trying to figure these things out.”