IMPORTANT POINTS:
- The blockchain company, Ripple, is pointed out by the Bank of America as a player that is making a difference in the cross-border payments sector.
- The report indicates that the emergence of SWIFT GPI as the preferred solution for tracking international payments
- The Bank of America points out that the Asia Pacific region, a leader in financial technology innovation, is on its way to abandon the use of physical cash.
The Bank of America (BofA) has highlighted Ripple as a company that is making a significant impact with the use of blockchain technology, especially in the cross-border payments sector.
In a recent report, BofA analysts argue that Ripple is distinguished by its effect on international payment systems, despite the relatively modest influence of the blockchain, especially in the Asia Pacific (APAC) region.
“Another technology that is having a real effect on real-time activity in APAC, albeit to a lesser extent than APIs (application programming interfaces), is blockchain. It is used as an underlying security measure in certain transactions, but it is not having the level of success that was expected, Venkat says.”
He also added that:
“The blockchain has played an important role in the digitization of commercial documentation, as it is the technical basis of the smart contract. However, in cross-border payments, Ripple’s work presents itself as a possible exception, since its impact has been limited”, he comments. As explained, the reason for this limitation is the rapid emergence of SWIFT GPI (global payments innovation) as the preferred solution for tracking and tracing cross-border payments.”
The banking giant is also of the opinion that APAC, as one of the major regions leading fintech innovation, is likely on its way away from physical cash.
