A recent collaborative global survey by Ripple and the US Faster Payments Council (FPC) has shed light on the shifting dynamics within the industry. This second annual survey, conducted in 2023, delves into the adoption and implications of blockchain technology in payment systems, offering insights from over a hundred leading figures in the field.
One of the standout revelations from the survey is the tangible benefits blockchain technology is bringing to the payments landscape. A significant 77% of respondents acknowledged the advantages of blockchain for payments, noting its positive impact on cost savings, security, speed of settlement, and transparency. These benefits are not confined to a single type of transaction. They span domestic and cross-border payments, encompassing various formats such as peer-to-peer (P2P), consumer-to-business (C2B), and business-to-business (B2B) transactions.
The applications of blockchain in payment systems are vast and varied, with a particular emphasis on B2B transactions, both domestically and across borders. This focus reflects a broader trend in the industry towards leveraging technology for efficiency and innovation in business transactions. Additionally, there is a notable interest in expanding blockchain use to other areas, including P2P and account-to-account (A2A) payments, indicating a growing recognition of the technology’s versatility.
Despite the enthusiasm for blockchain and cryptocurrency in payments, certain hurdles remain. Regulatory uncertainty, price volatility, and a lack of widespread adoption are cited as significant barriers. However, the landscape is changing, which is evident with the fact that many orgnizations are accepting cryptocurrencies for payments. This shift suggests a gradual overcoming of aversion and risk concerns associated with digital currencies.
Sustainability and efficiency emerge as critical considerations in the adoption of blockchain technology. As per the survey, over 81% of respondents have concerns over the energy consumption with blockchain use.
Still, a lack of awareness regarding this new technology prevails. The difference between the Proof-of-Stake and Proof-of-Work was known only to 53% of respondents. Despite the irreplaceable advantage that the crypto payment system holds, certain issues need to be addressed to bring it to the mainstream.
