As blockchain technology continues to become mainstream, it is poised to impact every aspect of society and finance, from payments and investments to data security and record keeping. Most would I agree investment in blockchain technology is important, especially in the financial services industry, but ensuring wise investment is a more complicated proposition. Along with concerns about speed, cost, and security, evaluating investments in blockchain technology also requires scalability, as the benefits promised by blockchain are highly dependent on choosing a blockchain that can handle growing demand.
Awareness of the potential of blockchain technology is spreading and the use of cryptocurrency is contributing to this. Thirty-seven percent of all consumers surveyed said they believed transactions using blockchain were faster, but this rises to 68% among consumers who own crypto. Eighty-two percent of CFOs and CFOs and 88% of merchants said their payments involving crypto are faster than those using other payment methods. At the same time, crypto usage and attitudes towards crypto are more positive outside the US and other countries with stable economies, as concerns over currency instability push people in other parts of the world to view cryptocurrencies more favorably.
This month “Blockchain Payments Tracker® » examines some of the factors affecting adoption and attitudes towards blockchain technology, as well as the data companies should consider when designing their blockchain technology strategies.
Around the Blockchain Payment Space
Central bank digital currencies (CBDCs), a form of cryptocurrency issued by central banks, are receiving increased attention around the world. More than two-thirds of the 81 central banks surveyed say they are likely to issue a CBDC or could eventually issue a CBDC in the short to medium term. Additionally, 90% of respondents said they worked on a CBDC. Twenty-six percent said they are piloting CBDC programs and 60% said they are actively exploring the concept of digital currency. There are indications that increased interest in cryptocurrencies and stablecoins, as well as the acceleration of digital transformation that has accompanied the pandemic, have contributed to greater interest in CBDCs.
Cryptocurrencies have become a mainstream alternative for unbanked consumers in the United States. A recent study conducted by the US Federal Reserve revealed that 13% of US consumers have used cryptocurrencies to make payments or transfer funds, a significantly higher proportion than the general population, of which only 2% have used cryptocurrencies to purchase some products. In the general population, investing is a more common reason for owning cryptocurrency than shopping, and 12% of all consumers said they own cryptocurrency for this reason. Most consumers owning crypto as an investment also report annual incomes of over $100,000. At the same time, 99% of those who view crypto ownership as just an investment also have bank accounts.
To learn more about these and other stories, visit Tracker’s News & Trends section.
Smile Coin on a scalable blockchain for online game payments
One of the many uses of blockchain is as a decentralized financial alternative to traditional finance, but the platform used can have a significant impact on speed, cost, and scalability. smile piece uses the transparency and scalability of blockchain to work with businesses excluded from traditional finance.
In this month’s feature, Nick Bucheleres, CEO of Smile Coin, talks about the use of blockchain for online game payments.
PYMNTS Intelligence: Assessing the Return on Investment of Blockchain Technology
Seventy-three percent of financial services executives surveyed recently Express fear losing a competitive advantage if their companies do not invest in blockchain and digital assets. While the question of whether or not to invest in blockchain technology can be decided for many professionals, there is a difference between identifying an investment need and identifying the best approach to ensure a return on investment. This month’s PYMNTS Intelligence examines some of the data that is driving interest in blockchain technology and the factors that allow companies to derive profits from their blockchain investments.
To learn more about evaluating the return on investment in blockchain technology, read the Tracker’s PYMNTS intelligence.
The “Blockchain Payments Tracker®”, a PYMNTS and Algorand collaboration, examines the latest trends and developments shaping the blockchain payments space and the factors impacting blockchain ROI.