A new Ripple study sheds light on the level of interest in Bitcoin (BTC), Ethereum (ETH), XRP, stablecoins and the central bank’s digital currencies (CBDCs) among payment professionals worldwide.
In August and September, Ripple asked 854 executives in 22 countries – all involved in payment services in digital banks, retail banks, money senders and payment aggregates – about their interest in digital assets.
Of the group, 34% say their companies are already in production with blockchain technology for payment-related use cases. 24% of respondents say they are moving into production and 21% say they are running a pilot or a proof of concept for blockchain technology.
In addition, 47% of respondents say they are interested in Bitcoin, 25% are interested in Ethereum, and 1
In contrast, central banks’ digital currencies, bank-issued stablecoins and non-bank stablecoins saw huge increases in interest rates from 2018. Today, 45%, 35% and 17% of respondents say they are interested in CBDCs, bank-issued stablecoins do not -bank stablecoins, respectively, only from 1%.
Amid the fluctuating interest in cryptocurrencies, the study shows that the volatility of cryptocurrencies still pertains to financial professionals.
This year, the report revealed that price fluctuations experienced by the top two digital assets and arguably the best known – Bitcoin and Ether – affect respondents’ perceptions of volatility and pose a problem. The majority of respondents state that they trust the reliability of digital assets but have concerns about their volatility. Respondents in mature markets have the strongest concerns, with 61% saying they were very to extremely concerned. In contrast, less than half of the respondents in LATAM and APAC show concern.
One of the reasons for this is that these regions include countries with a relatively volatile domestic currency – and one that devalued during the first six months of the COVID-19 pandemic, such as Argentina and Mexico. As a result, respondents in these regions are more likely to have examined the volatility of digital assets individually as they consider how to hedge domestic currency risk and manage currency-related taxes and capital management. ”
Overall, Ripple concludes that respondents are still concerned about the regulatory clarity, implementation costs and security of blockchain technology. However, some countries are making progress on the regulatory front, and new marketplaces are realizing the benefits of the new technology.
“The emerging markets are leading the way in the tax and recognize that responsible use of blockchain and digital assets can unleash an enormous potential for their economy. Undoubtedly, both will create greater economic inclusion and economic growth, not unlike the influence of the Internet. Mature markets also benefit. ”
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