According to the Bank of America (BofA), Ripple is an example of a company using blockchain and its use case for international payments to make an impact.
According to a recent report by BofA analysts, Ripple is an exception to the general rule that blockchain technology will have little impact on global payments systems, especially in the Asia Pacific (APAC) region.
“Blockchain is another technology that is impacting real-time activity in APAC, albeit to a lesser extent than APIs (application programming interface). Venkat observes that although it is used as an underlying security measure in some transactions, it is not as successful as its earlier hype had suggested.
As the technical foundation of the smart contract, it has been crucial to the digitization of trade documents, but, he says, aside from Ripple’s efforts, it has had little impact on cross-border payments. This is due to SWIFT GPI (global payments innovation) quickly becoming the preferred method for tracing and tracking cross-border payments.
The world’s largest bank also predicts that physical cash will eventually become obsolete because APAC is one of the key areas leading the way in financial technology.
“APAC is announcing new opportunities for all stakeholders to finally abandon hard cash by presenting every digital option, from consumer payments via QR codes on mobile devices to real-time corporate treasury and wholesale settlements to central bank digital currencies (CBDCs) and crypto.”