Author: Jagdish Kumar, India
With the adoption of Blockchain technology in the banking sector, banks globally can save up to $27 billion by 2030, a study from Juniper Research has found.
According to the research, ‘The Future of Blockchain: Key Vertical Opportunities & Deployment Strategies 2018-2030,’ Blockchain deployments will enable banks to save $27 billion on cross-border settlement transactions by the end of 2030, reducing costs by more than 11% per on-chain transaction.
Banks that integrate Blockchain will achieve cost reductions not just in payment processing and reconciliation, but in treasury operations and compliance, the research added.
The study also said that in compliance, automation of identity/money-laundering checks, allied to capability of the Blockchain to verify the digital identity of an individual, should enable savings of up to 50% of the existing costs base within a few years.
However, the research cautioned that the need to parallel-run blockchain-based services with legacy systems would mean that savings would not be realised for several years after initial deployment, with annual cost reductions not reaching $1 billion per annum until 2024.
In food trade exports, research found that there is a potential savings 50% within 12 years for consumers and enterprises across a range of industries, from reduced fees for home buyers to fraud in the food export trade.
Blockchain business to touch $2 TN by 2030
Another research conducted by IHS Market, a data analytics firm in the fields of finance and technology, released in July 2018 forecast that Blockchain technology could lead to a business activity value of $2 trillion by 2030.
The report includes all value that Blockchain adds as an entire vertical (not specific coin market caps). That includes Banks and financial institutions; supply chain and logistics suppliers; advertising and media companies; government and public-sector institutions; power and energy companies; retail and e-commerce; regulators; software specialists and developers; telecom operators and MNOs; and ICOs and cryptocurrency experts.
Despite the current slump in the coin market as a whole, applications for Blockchain are growing. This includes the ongoing patent frenzy and partnerships with businesses across nearly all sectors of business, the research added.
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