97% of big shots are optimistic about crypto and blockchain
Even though the “antiquated” payments system continues to dominate the financial transaction market, the overwhelming majority of financial bigwigs believe that crypto and blockchain are the future.
According to a new survey by the US Faster Payments Council and Ripple dubbed “Blockchain and Crypto in Payments: Transforming the Way Money Moves,” most big shots believe crypto-enabled solutions are the key to speeding up sluggish payments markets.
The respondents included nearly 300 individuals, ranging from analysts and directors to VPs and C-level executives, representing a cross-section of global sectors including retail, fintech, banking, media and entertainment, and consumer technology from 45 countries.
Among them, 97% believe blockchain technology and cryptocurrency will have a significant or very significant role in accelerating payments within the next three years.
Meanwhile, more than 50% think merchants will accept crypto payments within one to three years.
“Despite trillions of dollars still moving around the world via an antiquated and costly payments system. New research indicates that although global crypto payment transaction volume is small relative to total payment volume, its long-term growth prospects are bright,” the report reads.
The authors add that although few enterprises currently support blockchain-based payments, it is “only a matter of time” before more widespread adoption occurs. This is due first and foremost to the lack of regulatory clarity, which 89% of respondents cited as the chief adoption barrier.
Source: Blockchain and Crypto in Payments: Transforming the Way Money Moves
“Even the second most cited concern, limited industry acceptance, may be a corollary of regulatory unease. A Deloitte study of senior retail executives finds that merchants widely agree that accepting digital currencies offers a competitive advantage (87%), but more than 50% agreed that regulations must be enacted, “including national guidance around holding digital assets, clarity about the tax implications of using digital currencies, and the ability to hold digital currencies in a bank account,” the report reads.
The authors also emphasize that many respondents are concerned about industry environmental footprint. 98% of them acknowledged the environmental impact associated with blockchain use which is deemed important or somewhat important.
Still, the respondents know the difference between proof-of-work and proof-of-stake concepts, which the authors call encouraging.
“Meaningful crypto use among payment leaders may ultimately rely on digital assets with more sustainable underlying technology. For example, decentralized assets which rely on transaction verification methods that consume negligible energy,” they point out.
Finally, they emphasize the adoption of blockchain and crypto technology in traditional paper-based industries like the real estate industry. As a result, more homes are sold as NFTss. This could result in “a world where a real estate transaction doesn’t involve manual underwriting, appraisals, title searches and preparing deeds, and the home buying, selling and rental process can be much more efficient and cost-effective.”
Previously, GNCrypto explained why the U.S. Securities and Exchange Commission (SEC) is crypto’s nemesis.
