The G20, representing the world’s 20 largest economies, has imposed a deadline requiring banks to dramatically improve the speed and cost efficiency of cross-border payments. By 2027, the group aims for 75% of international transactions to be completed in under one hour, with associated fees capped at 1% or less of the total payment volume.
Current banking infrastructure under pressure
Most banks currently rely on legacy technology that processes cross-border transfers in several days, not hours. The presence of intermediary institutions, currency exchanges, and weekend processing restrictions further contribute to delays and increased costs.
Levi, a finance strategist and commentator, explained the challenges facing today’s banks, stating that the overwhelming majority are far from meeting the G20’s ambitious requirements. “Ninety-nine percent of banks today cannot do it,” Levi noted in a post highlighting the scale of change needed by the sector.
According to Levi, the existing banking system remains fundamentally incompatible with the rapid settlement and low-cost demands outlined by the G20 for cross-border payments.
Why XRP and XLM stand out
Digital assets like XRP and XLM, developed by Ripple and Stellar respectively, have been highlighted as already meeting these new standards. Both networks can process cross-border payments in as little as three to five seconds, with transaction fees amounting to fractions of a cent.
Importantly, these settlements are available around the clock, unaffected by weekends or public holidays, and do not require involvement from intermediaries. Levi described XRP and XLM as positioned “in the ultimate sweet spot” for institutions seeking fast and cost-effective transfers.
Mini dictionary: Ripple and Stellar, the companies behind XRP and XLM, specialize in blockchain-based payment solutions designed for near-instant cross-border value transfer, often targeting financial institutions and remittance providers.
Pathway for bank adoption
Levi outlined how banks might leverage the XRP infrastructure to comply with the G20’s 2027 requirements. By implementing payment rails built on XRP or XLM, financial institutions could deliver near-instant settlement at a cost “well below 1%,” allowing them to improve customer experience, meet regulatory targets, and safeguard profitability.
The technology shortens settlement times from several days to seconds, enabling banks to reach performance benchmarks and unlock new efficiencies.
Levi argued that adopting these decentralized payment networks is a logical solution for banks under pressure to modernize their systems before the approaching deadline.
| Asset | Settlement speed | Average fee | Availability |
|---|---|---|---|
| XRP | 3-5 seconds | Fractions of a cent | 24/7/365 |
| XLM | 3-5 seconds | Fractions of a cent | 24/7/365 |
| Traditional bank transfer | 1-3 days | Above 1% | Limited (no weekends) |
Deadlines drive sector-wide change
Levi expressed confidence that major banks will eventually integrate assets such as XRP and XLM to meet global benchmarks, suggesting “it’s just a matter of time” before these technologies become part of mainstream financial infrastructure. The G20’s requirements, now tied to a 2027 deadline, bring urgency to an industry-wide shift toward faster, lower-cost settlement models.
Although it remains uncertain how quickly banks can overhaul entrenched systems, Levi emphasizes that the needed technology is already mature and operational for institutions ready to act.
