Blockchain and digital payments are set to revolutionize the payment industry, according to a recent survey conducted by Ripple Labs and the US Faster Payments Council. The survey involved 300 payment industry leaders, and 97% of them believe that crypto and blockchain-enabled services could enhance payment speed within the next three years.
The report also revealed that 36% of participants believed that the key benefit of crypto solutions to the payment sector would be enabling faster payments, while 32% expected cost reduction for international payments. As a result, over 50% of respondents anticipate seeing more merchants accepting digital payments within the next 1-3 years.
However, regulatory uncertainty remains a significant barrier to widespread adoption of digital payments. 89% of survey participants cited regulatory uncertainty as a significant impediment to the adoption of digital payments. Just 17% of respondents currently accept digital payments.
The lack of clarity in regulations has led to a lapse in crypto payments, with many industry leaders maintaining that the growth of digital payment integration depends mainly on clear regulatory rules. “It lies solely with the regulators to provide transparent rules that will guide the activities of payment firms,” said one respondent.
The ongoing lawsuit between the SEC and Ripple has also contributed to regulatory uncertainty. Coinbase CEO, Brain Armstrong, is even contemplating relocating the exchange’s headquarters from the US to the UK if regulatory uncertainty persists in the coming years.
Results of the survey highlight the potential for blockchain and digital payments to revolutionize the payment industry, but regulatory uncertainty remains a significant challenge. As the adoption of digital payments continues to expand, regulators must provide transparent rules that will guide the activities of payment firms, and ensure a smooth transition to a digital payment ecosystem.