According to Ripple’s new Value Report, an overwhelming majority of 76% of surveyed financial institutions plan on using cryptocurrency within the next three years. The report highlights enterprise crypto and blockchain use cases in business settings such as NFTs, blockchain-based payments, and CBDCs.
Ripple’s new study focuses on emerging technologies like crypto and blockchain in business and financial institutions’ adoption and utilization. Both banks and businesses are recognizing the value of internal cryptocurrency use.
The most widely cited reason for the increase in crypto adoption is that it provides expanded access to financial services, with 42% of enterprises and 41% of financial institutions giving this explanation. According to the poll, portfolio management and payments were deemed the most important developments in business.
Hedging against price increases, commodity types, and asset appreciation is referred to as portfolio management. Blockchain and crypto use for payments was described by participants as having the following advantages: Data security and quality are two of the major benefits of blockchain and cryptocurrency usage for payments, according to the study.
Despite this, it’s still been difficult for big organizations to adopt this technology. According to the report, enterprises and financial institutions both find that a general misunderstanding is one of their primary challenges. However, the report also noted that the lengthy regulatory process within the sector causes hesitation from prospective customers. Regulators all around the world have been in a race to stay up with the quick-paced cryptocurrency industry, and new rules have emerged constantly.
Regulators in the United States have recently come under fire from members of the US Congress for their “non-judicial actions” against cryptocurrency firms. The Securities and Exchange Commission (SEC) is currently developing proper crypto regulations for one of the most active areas in the world.
Despite setbacks in crypto-ed and unclear regulations, the study finds a strong appetite among global organizations and central bank digital currencies (CBDCs). CBDCs will aid with the “digitalization of finance” and provide “greater access to credit for customers and enterprises,” according to 34 percent of studied institutions.
From a worldwide perspective, the study examined regional nonfungible token (NFT) interests based on emotional vs. functional benefits. Respondents in the Asia-Pacific region were three times more likely to buy an NFT for sentimental or emotional reasons than for other purposes. Music-related NFTs were of particular interest to 55% of respondents in eight different types of NFTs.
The study also looked at sustainability, which is becoming more and more prominent in the industry. According to Ripple’s data, over 75% of respondents want to purchase sustainable cryptocurrencies. More than 20% say they would only buy “sustainability” coins.