The use of cryptocurrencies and blockchain

The San Francisco based blockchain giant Ripple issued a report, where they analysed the current usage of digital assets and blockchain in enterprises. In Ripple’s Blockchain in Payments Report, Fintech focuses on blockchain technology and cryptocurrencies and their benefits for international payments.

For its report, Ripple surveyed in total 854 participants from 22 countries involved in the provision of payment services between August and September this year. The companies surveyed have sales ranging from 500,000 US dollars to over 10 billion US dollars, according to Crypto News Flash.

Blockchain versatility

As Ripple writes on its website, their third annual Blockchain in Payments Report shows “that the introduction of Blockchain is the key to a successful growth strategy for financial companies”. Over the past 12 months, early Blockchain users have reported almost double the business growth as other respondents.

According to the platform Crypto News Flash, Ripple’s Blockchain in Payments report summary also shows that blockchain technology is used in several different areas – many of the companies surveyed use the technology in supply chain management, retail and finance. It is therefore hardly surprising that 99 per cent of those surveyed see a benefit in digital assets for their company.

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Fact: Blockchain on the rise

Ripple has compared the results with the last year and found that the blockchain industry is now in the final stages of its introduction, according to Crypto News Flash. Seventy-nine per cent of participants had shown growth by entering unexplored markets and improving their services and products. Innovation in payments technology was the most important sector of all, according to 44 per cent of the participants. According to the report, 34 per cent of respondents were involved in creating a solution using blockchain technology. This sector had therefore made a leap between “early adopters and early majority”.

According to Crypto News Flash, 40 per cent of the companies surveyed cited the high speed with which even cross-border transactions can be facilitated and carried out as an advantage of blockchain technology. According to the news outlet BTC ECHO, companies also see the opening up of new payment rails and the inclusion of disadvantaged population groups as strengths of blockchain technology.

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On the other hand, as Crypto News Flash reports, the respondents considered the lack of regulatory clarity, which has knowingly been an issue in the crypto industry for some time, as an obstacle to the introduction of blockchains. Also, participants in the survey cited the level of investment required to implement the technology as well as the security aspect as obstacles.

CBDCs and Stablecoins are gaining popularity

Ripple’s survey also found that preferences for the various digital assets have shifted, according to BTC ECHO. A graph shows that two years ago, interest in the three most popular cryptocurrencies, Bitcoin, Ethereum and XRP, was by far the greatest – but now digital central bank currencies, bank-issued stablecoins, and other stablecoins are also becoming increasingly popular.

Some countries are already working on their digital currencies. As one of the most popular example, the People’s Bank of China (PBoC) has been testing the digital yuan since mid-April 2020, and the European Central Bank (ECB) is also, according to its statements, considering the introduction of a digital euro.

What’s typically not being mentioned much is, however, that those CBDCs and stablecoins require a network, or ledger, to transact on. This where digital assets like XRP will most likely come into play in the future. The XRP ledger and Ripple’s Interledger Protocol (ILP) allows any coin, token, or even more generally speaking asset, to transact on.   

The economic benefits of blockchain technology should, therefore, continue to be felt. According to the “Time for Trust” report by the accounting firm PwC, blockchain technology has the potential to generate around $1.76 trillion in added value for the global economy by 2030 and to create around 40 million new jobs worldwide.

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