Ripple Riding the Blockchain Wave in Cross-Border Payments – BofA
According to a recent report by the Bank of America (BofA), Ripple serves as an illustration of a company utilizing blockchain technology effectively for cross-border payments, distinguishing itself from other blockchain applications that have had a relatively limited impact on international payment systems in the Asia Pacific (APAC) region.
The BofA analysts state that blockchain, though not as successful as initially anticipated, is influencing real-time activity in APAC to a certain extent, albeit less than application programming interfaces (APIs).
Blockchain is primarily employed as a security measure in specific transactions and has played a crucial role in digitizing trade documentation through smart contracts.
However, regarding cross-border payments, Ripple is a notable exception, although its impact remains restricted.
This limitation can be attributed to the swift emergence of SWIFT GPI (global payments innovation) as the preferred solution for tracking and tracing cross-border payments.
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Furthermore, the banking giant predicts that APAC, a leading region in financial technology, is progressively moving away from physical cash.
By presenting various digital options, ranging from consumer payments via mobile QR codes to real-time corporate treasury and wholesale settlements, as well as central bank digital currencies (CBDCs) and cryptocurrencies, APAC is paving the way for stakeholders to finally abandon traditional cash.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
