Bank Of America Says Ripple Has A Positive Impact On Cross-Border Payments

Blockchain-based cross-border payment company, Ripple. (Photo; Doc. Forra)

JAKARTA - Ripple, a company operating in the blockchain sector, has been named by the Bank of America (BofA) as an example of a company that has an impact through the use of blockchain technology in cross-border payments.

In its latest report, analyst BofaA stated that Ripple is an exception in terms of a relatively simple blockchain effect on international payment systems, especially in the Asia Pacific (APAC) region.

"Another technology that has an effect on real-time activity in APAC, although at a lower rate than API (the interface of application programming), is blockchain. This technology is used as a security measure that underlies certain transactions, but has no success rate as suggested by the previous hype, notes Venkat, Bofa analyst.

However, Ripple is an exception in the context of cross-border payments. Despite its limited impact, Ripple has played an important role in cross-border payment innovations, especially with the fast SWIFT GPI (global payment innovation) as a preferred solution to track and track cross-border payments.

The Bank of America also noted that in the Asia Pacific region, which is one of the pioneers of financial technology, will most likely abandon the use of physical cash. Various digital payment options, ranging from payment of consumers through QR codes on mobile devices to central bank digital currencies (CBDC) and cryptocurrencies, open up new opportunities for all stakeholders to reduce dependence on physical cash.

This development shows a shift towards digital financial technology in the Asia Pacific region, with blockchain technology remaining an important factor in several use cases such as cross-border payments.