A joint study by Ripple and the Faster Payments Council (FPC) estimated that more than half of surveyed payment company leaders believe that most merchants will accept cryptocurrency as a method of settlement within one to three years.
Almost all the participants suggest that blockchain technology will enable faster financial transactions in the near future.
Crypto could transform cross-border payments
More than half of the 300 respondents think Global merchants will say “yes” to crypto payments in the next three years. Participants in the Middle East and Africa are more optimistic: 27% believe this will happen in the next 12 months. Latin Americans seem the most bearish, with 67% predicting that this will happen within more than three years.
More than 50% of the surveyed leaders think that reducing payment costs (both internationally and locally) is the main merit of cryptocurrencies.
“In particular, domestic payment providers view cryptocurrency as an answer to transaction and processing fees, which are often as high as 4%, according to the US Chamber of Commerce. Interestingly, while these providers cite the lower costs of cross-border payments as the main value proposition of cryptocurrencies, only about half currently offer cross-border payments. payment services today”, reads the investigation.
The vast majority of respondents (97%) believe that cryptocurrencies and blockchain technology will play a “significant or very significant” role in enabling faster transactions in the next 36 months. They also claimed that digital assets could transform cross-border settlements.
UK-based marketing firm Juniper Research supported that idea, saying that blockchain technology has the potential to increase savings for financial institutions doing international transactions to $10 billion by 2030.
“Observers should not underestimate the transformative opportunity here: global cross-border payment flows are expected to reach $156 trillion, driven by a 5% compound annual growth rate (CAGR),” the analysis added.
Only 17% have already adopted crypto payments
Despite general optimism about the potential merits of cryptocurrencies, only 17% of those surveyed revealed that they had embraced cryptocurrencies as a means of payment. The top barriers for organizations to jump on the bandwagon are regulatory uncertainty (87%), limited industry acceptance (45%), and customer protection concerns (24%).
However, Ripple opined that the US may be on the right track to put in place proper cryptocurrency rules, outlining President Joe Biden’s roadmap for regulating the industry and ensuring maximum investor protection. Susan Friedman, Ripple’s policy director, also said that communication between the blockchain company and US authorities had improved of late:
“We now have leaders in Congress on both sides of the aisle advocating for legislative solutions. The cryptocurrency dialogue is much more sophisticated than it was two years ago,” said Susan Friedman, Ripple’s director of policy.
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