Rann is the Vice President of Payments for Goldie fireblocksProvider of digital asset infrastructure.
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potential impact of a global blockchain Payment systems have been the focus of many recent discussions. Some may argue that the glass is half empty. However, through countless studies, researchers are proving that the glass is indeed half full. Deloitterecent study of tells Payment transactions through blockchain technology are not only 40% to 80% cheaper than traditional processes but also ‘Astronomically faster than traditional cross-border transfers due to being near-instantaneous,
Similar to the telephone, which evolved from PSTN lines to copper lines to 4G and now the world of 5G Payment is undergoing a transformation as it adapts to use blockchain technology to meet the scalability and borderless demands of a rapidly growing global economy.
Blockchain and Global Payments: Yesterday, Today and Tomorrow
For too long, the payments space has faced challenges of high costs, lack of transparency, limited speed and accessibility. Traditionally, payment systems work with trusted sources (aka intermediaries) and third parties who act as important facilitators in transaction processes. These facilitators make the transaction more expensive as each seller/middleman takes a small cut/fee.
Furthermore, traditional payment systems are more time consuming and inconvenient. In addition to international payments taking several days to complete, the constraints of working hours in different timezones, and the need for oversight and transactions 24/7, regardless of weekends and holidays, they are more prone to holdbacks and fraud. Are prone to transparency.
think back to 2018, when almost 78% business A case of fraud in B2B payments has been registered.
Today, blockchain technology offers lower costs, faster transaction speeds, enhanced security, and complete transparency to all users in the financial sector. Merchants and retailers who once relied on middlemen to transfer money from point A to point B now see greater improvements in terms of accountability, transparency, and speed and cost.
As digital payments are proving to work exceptionally well in developed country markets, the expansion movement is now opening doors for faster cross-border payments and global transfers. Currently, cross-border payments are patched together haphazardly. However, with the adoption of digital payment systems, we will see the birth of a world-changing, seamless process that will forever change the way we interact with value across borders.
transforming global commerce
a recent report from insider intelligence Having said that by 2023, 5.5 million US adults, or 2.3% of US Internet users, will use digital currencies and cryptocurrencies to make payments.
with major players like Visa, master card, strike, stash, and many more aggressively entering the digital payments space, one can only imagine the impact of blockchain technology on the financial industry. enablers such as digital currencies, tokenization of currencies, issuance stable coinsOn-chain transactions and others are all major players in the mass adoption of digital payments and currencies.
Multinational or financial companies are some of those who crave a piece of this pie.
every major Edge The world is currently considering or experimenting with digital payments with the goal of remaining competitive, innovative and relevant. 100% of the world’s banks are awaiting clarity, and 90% of them are awaiting regulatory approval. While smaller, less prominent banks have been held back either because of their risk-taking ability or unclear regulations, they are slowly making their way into the new world of digital payments.
However, these roadblocks will soon become obsolete as stablecoin regulators are aggressively driving the regulatory movement and opening doors around the world.
The glass is half full when it comes to digital asset payments
No matter where you stand on this debatable intersection of blockchain technology and its impact on global payment systems, it is inescapable to conclude that digital currency technology is here to stay. With every bank and company already thinking of or racing digital currencies, it’s only a matter of who crosses the finish line first.
That being said, increased participation from developed and developing countries is on the way to generate substantial benefits through the global impact of blockchain technology. Within the next five years, the world would witness the proliferation of consumer enablers and many of the world’s best-known banks, which would soon prove to be the future of finance.
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, DBS executes repurchase transactions on a blockchain-based network
, PayPal will expand its crypto service in Luxembourg
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