76% of institutions plan to use crypto in the next 3 years - Ripple report
According to Ripple (XRP) over three quarters of institutions expect to use crypto in the next 3 years.
What is ripple?
Ripple is a crypto solutions company that transforms how the world moves, manages and tokenizes value. Ripple’s financial solutions are faster, more transparent, and more cost effective - solving inefficiencies that have long defined the status quo. And together with partners and the larger developer community, we identify use cases where crypto technology will inspire new business models and create opportunity for more people. With every solution, we’re realizing a more sustainable global economy and planet - increasing access to inclusive and scalable financial systems while leveraging carbon neutral technology and a green digital asset, XRP. This is how we deliver on our mission to build crypto solutions for a world without economic borders.
Note on their research methodology:
The findings in this report are based on a number of inputs. More details on primary research methodologies can be found in the endnotes.
Primary research conducted globally surveying 800+ finance leaders in Financial Institu- tions and 800 finance leaders in Enterprises across 22 countries1
Primary research conducted globally surveying 800+ individuals with a mix of crypto experience across 22 countries
Primary research conducted globally surveying 700+ blockchain developers across nine countries
Secondary research gathering published insights from industry experts
Source: Ripple Report 2022
Highlights from the report:
Financial institutions and enterprises are understanding the benefits of internal crypto usage. The most common reason is that crypto gives more people access to more financial services, says 42% of financial institutions and 41% of enterprises.
According to the survey, portfolio management and payments come forward as the most valuable additions to the enterprise world. Portfolio management is detailed as hedging against inflation, hedging against other asset types and asset appreciation. Participants said data security and quality are two major benefits of blockchain and crypto usage for payments.
General lack of understanding is one of the largest barriers to entry
Despite setbacks in crypto-ed and murky regulations, the report still reveals the active interest of global institutions and central bank digital currencies (CBDCs). 34% of surveyed institutions say CBDCs will help with the “acceleration of digitization of finance” and give “greater access to credit for consumers and businesses.”
From a global perspective, the report analyzed regional nonfungible token (NFT) interest based on emotional vs. functional benefits. Respondents in the Asia-Pacific region were three times more likely to purchase an NFT for sentimental or emotional reasons compared to other reasons. Of the eight NFT genres listed, 55% said music-related NFTs are of the most interest.
Sustainability was also assessed, as it remains a hot topic both in and outside of the industry. According to Ripple’s data, over 75% of surveyed consumers prefer to buy sustainable cryptocurrencies. More than 20% claim they would only purchase “sustainable” crypto.
33% of global consumers would consider using crypto for purchases
25% of global consumers would consider using crypto to send money to friends or family
Crypto as a retailer differentiator: 56% of global consumers say they are more likely to transact with a merchant that accepts crypto.
Big Picture according to Ripple
There are high expectations within institutions for wide scale adoption and impact of blockchain technology, cryptocurrencies, and Central Bank Digital Currencies (CBDCs)
The technologies and assets are maturing, with more enterprises leveraging them in various ways, and more consumers understanding and owning both crypto and NFTs (Non-fungible tokens)
Blockchain-based use cases and their related benefits continue to multiply at a rapid rate for institutions, governments and consumers
As would be expected for what is still a relatively new technology, lack of understanding and the slow evolution of regulations in some jurisdictions are acting as key barriers to greater adoption