(MENAFN) Credit ratings agency Moody's has noted that looking at the possibility Saudi Arabia's pilot programme crushed the use of blockchain for cross-border payments, a great amount of cash in foreign currency exchange bills could be spared.
Moody's has released a note that pointed out cross-border payment infrastructure is to be pushed to start taking on blockchain technology through a deal signed between Saudi Arabia and US financial technology (fintech) company Ripple.
Moody's analyst Christos Theofilou explained in a note "Saudi banks will potentially improve their profitability on cross-border transactions by reducing the cost of each transaction, while gaining revenue with higher volume as the customer experience improves with the saving of money."
The note continued "we estimate that even a 10 percent reduction in the cost of completing and managing a cross-border transaction will translate to savings of roughly $200-$400 million per year system-wide."
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