According to Ripple’s Value Report, 76% of financial institutions intend to use cryptocurrency in their operations over the next 36-months. However, the majority of these entities said that they would explore the industry, provided there is a suitable regulatory framework.
A study revealed that 20% of global customers would only purchase sustainable cryptocurrencies. The company also pointed out that not everyone is aware of which digital assets use the Proof-of-Work consensus mechanism or which ones are less energy-intensive.
Ripple’s view on the most recent crypto trends
According to the research, approximately three quarters of global financial institutions plan to jump on the cryptocurrency bandwagon within the next three year. Participants were asked why they hadn’t done so yet. They cited a lack of regulations and the numerous scams that have been perpetrated in the space.
Banks’ attitude towards cryptocurrency is another factor that could increase adoption. A majority of respondents said they would be more inclined to invest on bitcoin and altcoins if the local financial institution offered such services. Only 17% stated that this wouldn’t make a difference.
It is important to note that a large number of monetary entities have become HODLers in recent years. Half of respondents said that they did so to protect against inflation. They see digital assets as “a currency for making payment or as an asset or collateral for borrowing in their top three priorities.”
Companies and individuals located in Latin America are most interested in the industry on a regional basis. Half of respondents believe that cryptocurrencies will have a major impact on the future economy. 35% of European respondents agree.
NFTs and CBDCs
Research also covered non-fungible tokens, (NFTs), and central bank digital currencies. Ripple pointed out that digital collectibles have “skyrocketed in recent months.” The niche is still “very young” and many consumers are either unsure or naive about it.
Most people who are aware of the merits of NFTs stated that they would rather purchase these products for their functional benefits (79%) than for their emotional benefits (45%)
People find non-fungible tokens that relate to music, gaming and sports industries most fascinating, while collectibles that are tied to movies and pop culture are less interesting.
Ripple then discussed the pros and cons and what consumers and financial institutions think about CBDCs. The firm claims that the product will dramatically increase monetary inclusion. “For example, it will make stimulus payments faster and more widely distributed.”
They can be used to make cross-border payments without any friction or cost, as they leverage the same technology that powers efficient digital assets such crypto. They can also be managed easily, which allows them to support swift and strong implementations of different monetary policies,” the firm stated.
However, they will still be fully centralized and monitored by governments. This means they won’t offer the same freedom as bitcoin or other altcoins.
36% believe CBDCs have a significant impact on society. 34% feel they will increase the economy’s network. Only 28% believe the products will help the business sector prosper.
CryptoPotato’s first article, Over 75% of Financial Institutions Plan to Use Crypto within the Next Three Year (Study), appeared first on CryptoPotato.
Marla Brooks – Financial Analysis
My name is Marla Brooks, and I am the mainstream behind the”observednews.com” for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.