Ripple’s Blockchain in Payments Report reveals that 75% of payments professionals are in favour of adopting blockchain technology and the use of digital assets in cross — border payments.
The study is the first of its kind to survey a large number of payments providers. Ripple announced the results at its Swell 2018 conference and claimed that the adoption of blockchain-based global payments is reaching “critical mass,” and that organisations are “already looking to incorporate digital assets into payment flows.”
Cory Johnson, Chief Market Strategist at Ripple, also reported the following information: “Data from The Boston Consulting Group (BCG) puts the size of the global market for cross-border payments volume at $27 trillion. Another $20 trillion in growth could be up for grabs between 2018 and 2026. Combine this with recent data from the World Bank suggesting global remittances alone will reach $642 billion this year.
Johnson also told the audience: “The world is used to getting things, right now, on-demand. They aren’t waiting for anything.” He added, “When we look at blockchain and the solutions it offers in cross-border payments, we have an opportunity to address their needs.”
Alenka Grealish, who co-presented the survey with Johnson is a senior analyst for corporate banking at Celent, went into the details of the report, explaining how nearly 700 global payments professionals across industries and in 22 countries around the world answered questions to assess the sentiment around blockchain adoption, interest in digital assets and general understanding about the benefits of this new technology. The audience also heard that 45% of the 700 surveyed are “already in production, piloting or close to signing with a blockchain provider.”
In the last couple of weeks Ripple has become very bullish in its statements and assessment of where the market is currently, which is a significant contrast to what they were saying earlier this year. Ripple’s chief cryptographer David Schwartz voiced doubts in June that banks had much interest in using the company’s payment technology. It is true that the banks are still resistant to xRapid, which uses digital assets, but with Santander, the biggest bank in Europe, using xCurrent, Ripple has made a big inroad into the banking community. Whether they will also adopt xRapid in the future depends on regulatory factors. However, payments providers in emerging markets are definitely responding positively to the use of digital assets to facilitate faster and cheaper payments between countries with different currencies.