A joint study by Ripple and the Faster Payments Council has found that over half of the surveyed leaders of payment firms believe that most merchants will accept cryptocurrencies as a settlement method within one to three years. The study also found that the majority of respondents believed cryptocurrencies and blockchain technology would have a “significant or very significant” role in enabling faster transactions in the next 36 months, with the potential to transform cross-border settlements.
However, despite this optimism, only 17% of respondents reported having adopted cryptocurrencies as a means of payment, citing regulatory uncertainty, limited industry acceptance, and concerns about customer protection as obstacles to adoption.
The UK-based marketing company Juniper Research supported the study’s findings, stating that blockchain technology has the potential to save financial institutions conducting international transactions up to $10 billion by 2030.
The research identified lowering payment costs as crypto’s main merit, particularly for domestic payment providers looking to address transaction and processing fees. The study noted that only around half of the providers surveyed currently offer cross-border payment services, with many seeing digital assets as a solution to the high costs of such services.
Observers are watching the US, which Ripple noted could be on the right path to setting appropriate cryptocurrency rules. The study cited President Joe Biden’s roadmap to regulate the industry and ensure maximum investor protection, which has received bipartisan support.
“We now have leaders in Congress on both sides of the aisle championing legislative solutions. The dialogue around crypto is much more sophisticated than it was two years ago,” said Susan Friedman, Director of Policy at Ripple.
With global cross-border payment flows projected to reach $156 trillion driven by a 5% compound annual growth rate, the transformative opportunity for cryptocurrencies and blockchain technology is immense.