A new report by Ripple, which examines what percentage of financial institutions are interested in using blockchain for payments, has found that more than three quarters of them plan to use crypto by 2025.
According to Ripple’s global research published on Aug. 11, 76% of the world’s financial institutions plan to use cryptocurrencies in the next three years, legislation permitting.
Meanwhile, slightly fewer companies, at 71%, believe they will adopt crypto in the next three years, a departure from the general trend of companies being more open to digital assets and more hopeful about their benefits.
Use of crypto as a means of payment is the most important factor
The widespread use of cryptocurrencies for payments is the most important factor that companies and financial institutions must consider when deciding whether or not to add cryptocurrencies to their investment portfolio. Cryptocurrency’s usefulness as a form of hedging comes second, while the associated use of crypto as a bridge currency comes in third.
More specifically, when asked why they would store cryptocurrency, 50% of respondents cited use as a hedge against inflation, a currency for payments, or as an asset to lend or as collateral for borrowing as one of the top three reasons for doing so.
Interestingly, the majority of consumers surveyed internationally (65%) said they would buy cryptocurrencies through their bank if the bank made them available, whether because of their trust in banks, their existing association with them, or some other reason.
Usicrypto as a means of payment
Remarkably, almost 70% of the financial institutions surveyed for this study expressed an interest in using blockchain technology for payments in some form, be it internal bank or branch transfers, bank-to-bank payments, or payments to customers.
The broad interest applies not only to blockchain in general, but also, with some differences, to each of the primary token types, including cryptocurrencies, central bank digital currencies (CBDCs), and stablecoins. About 70% of the financial institutions surveyed indicated that they are interested in using these tokens for various payment use cases.
Both corporates and financial institutions make payments before a variety of other portfolio uses, such as B. hedging against economic downturns or hedging against foreign currency risks. In both cases, payments have priority over hedging.
When asked what they believe are the main benefits of adopting blockchain and cryptocurrencies for payments, financial institutions provided answers that were reasonably evenly spread across a range of benefits, with data security and quality slightly ahead of prospects for expansion in additional markets and real -Time billing.