Binance sees potential of blockchain to modernize global payment system – DL News

According to a research report from Binance, blockchains offer a unified technology landscape that can potentially streamline the global payment infrastructure and surpass the fragmented nature of the modern banking system.

When a transaction is made with a Visa or Mastercard, the consumer benefits from almost instantaneous payment authorization, but the actual settlement of the transaction, the transfer of funds from the customer’s bank to the merchant’s bank, often does not occur for at least a day.

Settlement times are even longer when funds need to be transferred across borders, as this requires communication between banks in different countries.

Blockchains are more efficient in terms of speed, with transactions being settled in less than an hour, the report said. It also notes that blockchain transactions are less expensive than traditional transfer methods.

World Bank data shows that the average cost of transferring money across international borders was 6.35% in the first quarter of this year.

Blockchain networks like Solana can enable transactions at a fraction of that cost, moving stablecoins for fees as low as a fraction of a cent, according to the report, which cites a Visa pilot project that uses blockchains to settle payments.

The report notes that there are still scalability challenges to overcome, as Visa has the capacity to process more than 65,000 transactions per second, while Solana, for example, can handle just over 1,000.

However, the report concludes, as the global regulatory environment shapes, technology evolves, and businesses become more comfortable with blockchain technology, many may choose to transact in stablecoins on-chain rather than in the slower and more expensive fiat banking system.

Cryptocurrency Market Players

• Bitcoin is down 1.49% today at $58,195.32.
• Ethereum is down 1.62% today at $2,477.64.

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