Ripple Report: Institutional Adoption of Crypto to Soar in 3 Years
- The Ripple report revealed that despite strict calls for crypto regulation, there is a growing interest in cryptocurrencies amongst financial institutions and enterprises.
- Music NFTs were the most popular among the categories presented in the survey.
Crypto payment firm Ripple has released a new report detailing the growing interest in cryptocurrencies. The firm surveyed different financial institutions and 76% of the respondents noted that they planned to use cryptocurrency in the next three years.
The report from Ripple sheds insight on the practices of business organizations and financial institutions in the adoption and use of blockchain and other new technologies. As per the report, businesses and financial institutions are both becoming aware of the advantages of internal crypto usage. 42% of financial institutions and 41% of businesses covered in the survey noted that crypto was important since it grants access to financial services.
The enterprise world prioritizes payments and portfolio management as the two most beneficial innovations based on the survey. Many respondents identified data security and quality as two key advantages of using blockchain and cryptocurrencies for payments. They also noted that crypto could be used as a hedge against inflation and other asset types.
However, blockchain is still in its infancy as a new technology. So, most large institutions struggle to accept it. The Ripple report claims that financial institutions and enterprises both find a widespread lack of awareness as their core concern. The situation surrounding crypto regulation is reportedly another factor dissuading potential users.
The report states that potential crypto users are hesitant to adopt the sector because of the industry’s slow-moving regulatory process. Globally, crypto policies and regulations are constantly changing as governments scramble to stay up with the bustling cryptocurrency industry.
Some regulators have been accused of going outside their jurisdiction to crack down on the crypto space. Most regulators, such as the US Securities and Exchange Commission believe the crypto space is a risk to the national economy if it is unregulated.
The decline in the market, which saw investors lose billions to the failures of Terra, Three Arrows Capital, Voyager, and Celsius, alarmed regulators over the volatile nature of the crypto market.
Regardless of the growing demand for regulation, the Ripple report revealed that several global institutions and enterprises have a strong interest in launching their own central bank digital currencies (CBDCs). 34% of institutions surveyed in the report believe CBDCs will trigger the adoption of digital finance and grant increased access to credit for users and enterprises.
Highlighting the regional perspective of cryptocurrencies, the report wrote,
Generally speaking, Asia Pacific (APAC) and Latin America (LATAM) are more optimistic about the value of blockchain and its tokens, with the Middle East and Africa (MEA) and North America somewhat less so, and Europe the most conservative.
The report also examined regional nonfungible token (NFT) interest based on emotional versus practical benefits from a global perspective. Asia-Pacific respondents were three times more likely than respondents elsewhere to buy an NFT for sentimental or personal reasons. Finally, 55 % of the respondents were more interested in music-based NFTs than other categories.