According to a new analysis by Ripple and the Faster Payments Council (FPC), digital currencies are playing a critical role in the rapid evolution of the payments landscape. The potential of cryptocurrencies in the developing payments environment is examined in the report “Transforming the Way Money Moves.”
The report stresses how swiftly the payments ecosystem is changing and how compelling use cases for digital currencies are emerging. It implies that cryptocurrencies are well-positioned to address some of the persistent problems in payments by effectively filling gaps in payment flows due to their combination of flexibility and utility.
The paper also emphasizes how crucial it is for all ecosystem players to comprehend the variety of use cases and possible benefits of new payment technology. It implies that a strategy that makes use of the finest features of diverse payment technologies can hasten innovation and increase the usefulness of the payments system as a whole.
To ascertain the attitude of payment providers on the adoption of blockchain and cryptocurrencies for payments, Ripple and the FPC conducted a worldwide payments survey. A majority of suppliers regard crypto-enabled solutions as essential to accelerate slow payments markets, according to the survey, which included roughly 300 payments leaders from various sectors across 45 nations. The lower cost of domestic and international payments is the biggest advantage of cryptocurrency, according to the report.
The research also offers an overview of how cryptocurrencies are now used in payments, perspectives from players in the quicker payments ecosystem, and predictions for the usage of blockchain and cryptocurrencies in payments in the future. It implies that greater broad adoption of blockchain-based payments is imminent, even though only a small number of businesses now do so. But the speed of increased adoption depends on clearer regulations.
The paper contends that blockchain and emerging crypto use cases provide transformative payment prospects despite the outdated and expensive existing payments infrastructure. Providers and clients gain from decreased process complexity, lower costs, and increased transparency as adoption increases.
The analysis also shows that there are promising long-term growth possibilities for the amount of worldwide crypto payment transactions. The number of Americans using cryptocurrency payments is expected to reach 5.5 million in 2023, a 350% growth in just three years.
Within the next three years, nearly all polled leaders (97%) predict that blockchain technology and cryptocurrencies would considerably speed up payments. According to the paper, cross-border payment transformation has special promise for blockchain and cryptocurrency technologies. It highlights how the rapid, dependable, and transparent payment settlement offered by blockchain might help financial institutions undertaking international transactions save a lot of money—an estimated $10 billion by 2030.
Finally, the paper asserts that the pandemic era has given movements to digital payments a new sense of urgency. Less expensive domestic and international payments, according to more than 50% of respondents, are cryptocurrency’s main advantage. Almost 90% of the leaders who responded to the survey recognize some “cost-improvements related to international payments” and 75% anticipate local cost advantages.
