According to a study by the International Association of Money Transfer Networks (IAMTN), the use of cryptocurrencies for transaction settlements can be a useful alternative to traditional settlement systems.
This is because on the blockchain, transactions are instantaneous, without the need to go through intermediaries such as correspondent banks.
Association experts argue that the deterioration of correspondent relations between banks, combined with the growing volume of cross-border payments, makes the importance of the blockchain and all related technologies obvious. New technologies will not only reduce the cost of transferring funds, but also significantly speed it up, the IAMTN report says:
“Thanks to new technologies, international transactions can be completed almost instantly, which eliminates the need for pre-funding in recipient countries, the costly services of money transfer operators. A number of businesses, from traditional remittance service providers to crypto-currency fintech companies, are already using blockchain technology to improve money transfer systems.”
The report includes the results of a study by the company, in which experts studied the views of industry participants on innovative technologies that can improve the process of sending funds across borders. As the results show, both blockchain and cryptocurrencies are seen as innovations that open up an infinite number of opportunities in the field of cross-border payments.
Earlier, FTX CEO Sam Bankman-Fried called blockchain a disruptive technology because of its ability to simplify payments, fix stock market flaws, and revolutionize social media.
Source: Bits
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