A new report from Ripple has examined what percentage of financial institutions are interested in using blockchain for payments. In this it was found out that more than three quarters of them plan to use cryptocurrencies by 2025.
On August 11, a global study by Ripple was published, which shows that 76% of the world’s financial institutions will use cryptocurrencies in the next three years, if legislations will allow it.
Meanwhile, at 71%, slightly fewer companies believe that they will use cryptocurrencies in the next three years, which is a departure from the general trend that they are more open to digital assets.
The widespread use of cryptocurrencies for payments is one of the most important factors that companies and financial institutions need to consider when deciding whether or not to include cryptocurrencies in their investment portfolio.
The usefulness of cryptocurrencies as a kind of hedge comes in second place, while the associated use as a bridge currency is in third place.
When it came to figuring out why they would hold cryptocurrencies, 50% of respondents cited using them as a hedge against inflation, as currency for payments, or as an asset to lend, or as collateral for borrowing, as one of the top three reasons.
The majority of respondents (65%) said that they would also buy cryptocurrencies through banks.
Almost 70% of the financial institutions surveyed were interested in using blockchain technology for payments in some form.
The great interest is not only in the blockchain in general, but also with some differences for each of the primary tokens. In addition to cryptocurrencies, this also includes digital central bank currencies such as CBDCs and stablecoins. About 70% of the financial institutions surveyed stated that they are interested in using these tokens for various use cases.
Both companies and financial institutions make payments against a variety of portfolio uses, such as hedging against economic downturns or hedging against foreign currency risks. In all cases, payments take precedence over hedging.
When asked what, in their opinion, the main advantages of introducing blockchain and cryptocurrencies for payments are, financial institutions indicated data security and quality. Prospects for expansion into additional markets and real-time settlements were also an issue.