Summary
- Ripple and the Faster Payments Council (FPC) released a report on crypto-enabled payments which showed that 97% of respondents believed in cryptocurrency’s power to enable faster payments.
- The survey results showed that more than half of payment executives polled believed that most merchants will accept cryptocurrency payments within the next three years.
- Lack of regulatory clarity is the main barrier to adoption according to the survey, with 90% citing this as a major issue.
Study on Crypto-Enabled Payments
Ripple and the Faster Payments Council (FPC) released a report on crypto-enabled payments which highlighted potential opportunities for faster and cheaper transactions. The survey was sent to over 950 FPC subscribers across 45 countries, including analysts and CEOs. Results showed that 97% of respondents believed in cryptocurrency’s power to enable faster payments. More than half of payment executives polled believed that most merchants will accept cryptocurrency payments within the next three years. 27% of Middle East and African executives believe that most merchants will adopt crypto payments by 2024.
Barriers To Adoption
Despite many optimistic views towards cryptocurrencies, only 17% supported crypto-enabled payments at the time. The main reason for not adopting these technologies is lack of clarity on regulatory measures. Nearly 90% of respondents cited regulatory ambiguity as the main barrier to adoption, with 45% citing low merchant adoption as another issue. Ripple CEO Brad Garlinghouse stated in an interview with Bloomberg that he expects a decision on SEC’s lawsuit against his firm this year, which he believes “will be pivotal for the whole industry”.
Benefits Of Crypto Enabled Payments
Crypto-enabled solutions like mobile payments and central bank digital currencies offer numerous benefits including increased speed, improved security, cost savings and easier international transactions. These solutions could potentially help reduce fraud risk by providing more transparency into transaction data due to its immutable nature. Additionally, blockchain technology could also facilitate real-time cross border payments while reducing costs associated with foreign exchange fees or intermediary charges from banks or financial institutions.
Conclusion
The global payment industry appears optimistic about how blockchain technology can make faster and cheaper transactions possible through cryptocurrencies or other digital assets such as CBDCs or mobile wallets. Despite some hesitancy due to regulatory uncertainty, there are still many opportunities for adoption as more organizations look towards implementing them into their existing systems in order to benefit from their advantages such as improved speed, security and cost savings while reducing fraud risks caused by traditional methods of money transfer
