Mass adoption of Blockchain in payment is near: Swell 2018
The second day of Ripple’s flagship event, Swell 2018, saw the unveiling of the “Blockchain in Payments Report”, which revealed that companies and countries are incorporating blockchain technology in large numbers, especially in cross-border payments.
Cory Johnson, chief market strategist at Ripple, kicked off the keynote session and formally unveiled the report. He stressed the importance of the adoption of blockchain to facilitate payments, stating, “there’s a lot of money at stake.”
Data from the World Bank showed that global remittances could balloon up to $642 billion this year. So it's only logical that blockchain businesses look into this market. The global market for cross-border payments volume stands currently at $27 trillion, as confirmed by The Boston Consulting Group (BCG). An additional $20 trillion in growth could be added in the next eight years.
Moreover, the introduction of advanced technologies has made people accustomed to immediate fulfillment of needs. “The world is used to getting things, right now, on-demand. They aren’t waiting for anything. When we look at blockchain and the solutions it offers in cross-border payments, we have an opportunity to address their needs,” Johnson said.
With the incorporation of blockchain technology to transfer digital assets of verifiable value, the international money transfer system will be faster, less time-consuming, information-friendly and efficient.
The report was explored by Alenka Grealish, senior analyst for corporate banking at Celent, a financial services company. Grealish worked with over 700 payment professionals from 22 different countries to understand the hostility to blockchain adoption, the growing interest in virtual currencies and the ways in which its incorporation will better the functioning of business as well as the global economic system.
Respondents were supportive of the idea of adopting blockchain in the payment realm, said Grealish.
“When you envision the scale with the status quo on one side and the forces of change on the other, we see that the status quo weighs heavy, but the forces of change are starting to dominate, to tip the scale in the direction of change,” she added.
Key takeaways from the report
This year would be recalled as the experiment year for the global blockchain, with 18 percent of respondents affirming that their technology is in production or near-production for use in payments.
Nearly 45 percent said they were scouting the market and were already in production or close to finalizing a deal with a blockchain provider.
Over the past few months, there has been a spike in the number of users of digital assets for payments, with 75 percent stating that they are extremely or very interested in the use of these assets as a settlement system or a base currency to trade.
The infrastructure that helps build a better and more connected blockchain system was mentioned as one of the key points to build a payment network. 85 percent of the respondents using blockchain in production and nearly 90 percent of those moving toward production were interested in the use of virtual currency as a payment mechanism.
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