Ripple Releases Report That Shows 75% Of Institutions Will Use Crypto In 3 YearsAugust 12, 2022 3:16 pm
Ripple has recently released a new Value report which highlights the trends of the crypto industry and blockchain in general.
The most impressive stat shown in the report is the estimate that roughly three quarters of all institutions will use crypto within 3 years.
The main reasons for this is that digital assets provide financial services to those who may not have access previously and that it is becoming a more attractive alternative asset for institutional investors.
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In a time where there is uncertain economic conditions and concerns about inflation, the benefits of digital assets are even more apparent.
What percent of financial institutions are interested in using blockchain for payments? ➡️ 70%
In our New Value Report, enterprise respondents agreed that data security and quality are key benefits of using blockchain and crypto for payments. Learn more: https://t.co/3KR5s6lk3i
— Ripple (@Ripple) August 11, 2022
Both financial institutions and enterprises are understanding the benefits of internal crypto usage. The most common reason is that crypto gives more people access to more financial services, says 42% of financial institutions and 41% of enterprises.
According to the survey, portfolio management and payments come forward as the most valuable additions to the enterprise world.
Portfolio management is detailed as hedging against inflation, hedging against other asset types and asset appreciation. Participants said data security and quality are two major benefits of blockchain and crypto usage for payments.
Nonetheless, as this is an emerging technology, adoption is still an uphill battle for large institutions. According to the report, enterprises and financial institutions both find that a general lack of understanding is one of the biggest challenges.
The report did also state the many challenges that the industry is facing as well, especially from a regulatory perspective.
For example, a lot of lawmakers within the US are coming under major scrutiny due to their “non-judicial” actions against crypto companies.
With the SEC being one of the primary reasons for this, there is still major hesitation for some users as a result.
Still, these regulatory setbacks do not prevent the inevitable which is the fact that there is still strong global interest from international institutions as well as a strong push for CBDCs.
Three-quarters of institutions to use crypto in the three years: Ripple – https://t.co/YeYQupNb0x
Ripple’s new Value Report on enterprise crypto and blockchain highlights pic.twitter.com/KwxXOv29nV
— CryptoSavedMe (@CryptoSavedMe_) August 12, 2022
Despite setbacks in crypto-ed and murky regulations, the report still reveals the active interest of global institutions and central bank digital currencies (CBDCs). 34% of surveyed institutions say CBDCs will help with the “acceleration of digitization of finance” and give “greater access to credit for consumers and businesses.”
From a global perspective, the report analyzed regional nonfungible token (NFT) interest based on emotional vs. functional benefits.
Respondents in the Asia-Pacific region were three times more likely to purchase an NFT for sentimental or emotional reasons compared to other reasons. Of the eight NFT genres listed, 55% said music-related NFTs are of the most interest.
Sustainability was also assessed, as it remains a hot topic both in and outside of the industry. According to Ripple’s data, over 75% of surveyed consumers prefer to buy sustainable cryptocurrencies. More than 20% claim they would only purchase “sustainable” crypto.
According to the report, by 2025, 76% of global financial institutions want to use cryptocurrency, provided that it is allowed by law.
— TheSame (@TheSameWeb3) August 12, 2022
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