According to a recent report by Ripple, in collaboration with the US Faster Payments Council (FPC), global financial institutions stand to save a substantial $10 billion by the year 2030, courtesy of blockchain technology. This notable forecast is based on broadly expanding use of blockchain for cross-border payments, which themselves are anticipated to experience substantial growth, predicted to reach $156 trillion by 2030, driven by a 5% compound annual growth rate.
Nonetheless, experts point out a slight divergence of opinions among the 300 payment leaders surveyed from various sectors, including fintech and banking, from 45 different countries. While there is a unanimous belief in blockchain’s key role in accelerating payment systems in the coming years, confidence in the adoption timeline for merchants to accept crypto payments splits the crowd.
Around 50% of the surveyed leaders are convinced significant merchant adoption of crypto payments will materialize over the next three years. This belief differs across regions with Middle Eastern and African leaders showing the highest level of confidence, 27%, about merchants’ acceptance of crypto payment methods within the next year. Their Asian-Pacific counterparts, on the other hand, are less assured, with only 13% sharing that optimism. Nevertheless, among all the surveyed leaders, a positive 17% maintain that such adoption could happen within just a year.
Pouring a drop of doubt into an otherwise bullish forecast, it’s essential to underline that these estimates are contingent on the speed at which blockchain and crypto technologies evolve and laws regulating them adapt. The transformation of the financial landscape under the influence of these decentralized innovations won’t be overnight but rather a gradual shift over a decade.
Turning to legal aspects, the U.S. Securities and Exchange Commission (SEC) suffered a recent decision reversal about SPIKES Index securities. A ruling considered by many as ‘arbitrary and capricious’ has effectively changed these financial instruments’ classification from ‘futures’ to ‘securities futures’, leading to a three-month winding down period for transactions.
Such a turn of events, whilst possessing no direct correlation to the aforementioned blockchain shift, does signal a need for regulatory agencies to adopt a well-thought-out and transparent approach to dealing with emerging financial tools and technologies. This could very well act as a catalyst or deterrent for blockchain’s potential in reshaping our financial future.
While it is virtually impossible to predict precise timelines, it’s evident that gradual adoption of blockchain technology and crypto payments by financial institutions and merchants alike is on the horizon, promising profound and exciting changes to the way we view and use money.
Source: Cointelegraph
