Ripple The third annual Blockchain in Payments report had some interesting revelations about the adoption of digital assets globally. Despite the ongoing global pandemic, 79% of businesses reported growth in 2020, and 44% said that innovation in payment technology is a key growth driver.
According to the report, there were four key benefits that drove blockchain adoption, namely, better data quality, increased data security, cost savings, and business growth.
Interestingly, respondents from Latin America stood out by ranking growth as the biggest benefit, followed by cost savings, while more mature markets ranked cost savings and data transparency as the biggest benefit of blockchain adoption.
The graph above demonstrates the adoption rate across all business types, with digital banking / fintech businesses leading by a few percentage points. While these companies are the most common blockchain adopters, the survey revealed that blockchain is now scaling beyond payments.
Reportedly 98% of respondents running a payments blockchain POC have also implemented the technology for default use cases, the most common being Trade Finance and Supply Chain Management.
However, in terms of the main barriers to adoption, the lack of regulations and clarity on that front remains a universal problem.
This year, the report also revealed that price swings experienced by the top two digital assets and arguably the best known, bitcoin and ether, influenced respondents’ perception of volatility, posing a problem.
That said, less than half of the respondents in Latin America and APAC were concerned about this, possibly due to the fact that these regions use digital assets as a hedge against their own national currency risk.
Perhaps the most important revelation of all was that early adopters of blockchain-based payment solutions have seen the highest levels of growth year over year.
The market opportunity for innovators in fintech / retail banks and those located in emerging markets is quite significant with expectations of strong and continued growth.
Amid all the factors that contribute to the growth of digital assets, the key takeaway is that early adopters of blockchain payments and less mature markets are likely to see the most growth in the future.
This is a machine translation of our English version.
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