Ripple fetched the data from a recent crypto and blockchain-focused survey with the Faster Payments Council.
A recent Ripple report reveals that key payment industry leaders think blockchain and cryptocurrency can effectively enhance the payment sector. However, they identify regulatory ambiguity as the primary impediment to crypto adoption. Ripple fetched the data from a recent survey with the Faster Payments Council.
Ripple shared the publication in a recent tweet. According to the report, Ripple and the US Faster Payments Council surveyed to gather the opinions of up to 300 payment leaders on the benefits and challenges of blockchain and cryptocurrency in the payment sector.
Crypto adoption is accelerating, but lack of regulatory clarity is still creating headwinds in the U.S. for crypto-enabled payment solutions.
Find out what's top of mind for global payments leaders in our latest whitepaper with @Faster_Payments. https://t.co/QYVe3U1IUZ
— Ripple (@Ripple) April 20, 2023
Out of the 300 leaders surveyed, an overwhelming 97% agreed that blockchain and cryptocurrency could improve the speed of payments in the next three years. These respondents also believe blockchain and crypto could boost customer value in the industry.
Despite multiple barriers, cryptocurrency is gradually creeping into the mainstream payment sector. Users of crypto payments in the United States are expected to increase to 5.5 million this year. This would mark a 305% increase in three years. Moreover, more than 50% of the surveyed respondents believe most merchants will accept crypto payments in the next one to three years.
The survey also sought to identify the most significant advantage crypto can offer the payment industry, with 36% of respondents citing faster payment resolution as the primary benefit. Meanwhile, 32% of respondents cited the reduced cost of international payments, and 19% pointed to the lower cost of domestic payments.
Regulatory Uncertainty is a Major Deterrent
The survey found that although most respondents contemplate using crypto in payments, only 17% are presently in favor of crypto payments. The overwhelming majority of these respondents, approximately 89%, identified regulatory uncertainty as the primary obstacle to the widespread adoption of crypto payments.
Industry leaders have expressed concern over the global lack of regulatory transparency in the crypto sector, with specific attention paid to the United States. Ripple’s ongoing legal battle with the U.S. SEC is an example of the challenges arising from this uncertainty. Coinbase CEO Brian Armstrong recently revealed that the exchange might consider relocating from the U.S. if regulatory clarity is not achieved within the next few years.
Despite the regulatory uncertainties, some regions, such as Hong Kong, are already making strides to address this issue. Furthermore, the EU Parliament recently approved the Markets in Crypto Act (MiCA) regulation to oversee crypto markets within the European Union. This framework is considered the most comprehensive crypto regulatory framework globally and is set to take effect next year.
In addition to regulatory uncertainty, respondents also expressed concerns about the environmental impact of cryptocurrencies, which they consider a hindrance to widespread adoption. Ripple has taken the lead in championing various initiatives to address this issue.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
