We asked CEOs and co-founders for their insights on how blockchain has significantly reduced the cost of cross-border transactions and what we can learn from these cases. From reducing payment costs to cutting out intermediaries, here are four examples of how blockchain is transforming global finance.
Reducing payment costs Increasing transparency Transforming global finance Eliminating intermediaries
Reduce payment costs
One example of how blockchain has significantly reduced the cost of cross-border transactions is the partnership between IBM and Stellar, which allows financial institutions to settle transactions using blockchain technology. Ta.
Traditionally, cross-border payments have been costly due to intermediaries, currency conversion, transaction fees, etc. Blockchain minimizes these fees because transactions occur directly between parties on a distributed ledger.
In this case, blockchain removed the need for multiple intermediaries, reducing transaction times to minutes and reducing costs by up to 40%. Importantly, blockchain’s transparency, speed, and cost efficiency could revolutionize international payments, especially for companies that frequently handle cross-border transactions.
Shehar Yar
Software House President
increase transparency
A notable example is a large global retailer deploying blockchain to manage payments to overseas suppliers, reducing transaction costs by cutting out intermediaries and reducing transaction times from days to just a few. This has been reduced to just a few minutes. This not only reduced costs by more than 30%, but also increased transparency and made it easier to track payments throughout the supply chain.
This example demonstrates the power of blockchain to increase efficiency and reduce dependence on traditional financial intermediaries, highlighting its potential to revolutionize financial transactions in global trade. It also points out the importance of embracing technological advancements for companies looking to improve operational efficiency and profitability.
mark mcdermott
ScreenCloud CEO and Co-Founder
Transforming global finance
One of the most prominent examples of how blockchain technology can reduce the cost of cross-border transactions is provided by the Stellar Development Foundation. The foundation collaborated with IBM to create the World Wire network, which enables real-time clearing and settlement of foreign exchange. payment. Notable developments in the network included IBM partnering with several banks to enhance remittance and foreign exchange services and reduce costs through Stellar.
This effort was important to demonstrate the potential of blockchain to reduce transaction costs while simultaneously reducing settlement times. The World Wire network eliminates intermediary fees and significantly reduces the time it takes to complete wire transfers by allowing users to transact directly without going through the correspondent banking relationships that often occur through the traditional SWIFT network. I was able to. Anything that takes less than a few seconds is measured in days.
The important lesson for businesses here is that blockchain is much more than currency transactions. Blockchain is a tool that can fundamentally change the nature of financial infrastructure by making it cheaper and faster. This could lead to entirely new ways of doing global finance, such as remittances. This is a compelling reason to start looking at how blockchain can be used to improve operational efficiency and reduce costs at the scale of global finance and money transfer.
thomas franklin
CEO, replacement
Eliminating the middleman
In one example, Crestal helped a global shipping company implement a blockchain solution for cross-border payments between international partners. Previously, the company relied on traditional banking systems, which were subject to high exchange and intermediary fees and delays. By moving to blockchain-based payments, the company reduced transaction costs by 25% and cut settlement times from three days to a few hours.
The lesson here is that the decentralized nature of blockchain eliminates the need for intermediaries, significantly reducing fees and speeding up transactions. This approach also allows all parties involved to track payments in real time, increasing transparency, fostering trust, and reducing disputes. This shows the potential of blockchain to streamline processes and improve efficiency in industries with complex cross-border interactions.
Marouan Zereg
Co-founder of Crestal
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