Bitcoin adoption among merchants is expected to grow by 50% over the next three years, according to the latest report. This result is investigation Conducted by the Ripple and Faster Payment Council, it was attended by 300 payment leaders from 45 countries.
Growing global interest in Bitcoin payments
The report shows that blockchain technology has emerged as an alternative to costly payment systems in recent years. The crypto industry is experiencing a significant increase in trading volumes, and in 2023 he will have over 5.5 million crypto payment users in the US alone.
The top four use cases for cryptocurrency payments include money transfers, cross-border B2B payments, card payments, and digital payments. Remittances make up a large part of this, with foreign workers turning to cryptocurrencies to avoid high transaction fees when sending money to family members.
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Additionally, the increasing adoption of Bitcoin payments by PayPal and Stipe has also significantly boosted adoption. Beyond Bitcoin, stablecoins such as USDT and USDC are widely adopted due to their low volatility. Using stablecoins for cross-border payments is reported to be 80% cheaper than traditional payment methods.
Nearly 97% of survey respondents believe that cryptocurrency payments will play a major role in accelerating payments within the next three years. More than half of the leaders surveyed expect most merchants to adopt crypto payments within this period.
The Middle East Leading the Hiring Race
According to data from Ripple and FPC, most payment companies believe merchants around the world will use more cryptocurrencies in the near future. As seen in the chart below, the survey results show that 64% of Middle East payments firm representatives believe that more than 50% of merchants will start accepting cryptocurrency payments within the next three years. is shown.
This is followed by Europe at 58%, North America at 51% and Africa at 51%. In contrast, about 17% of Latin American representatives believe adoption will occur within this time period. This is despite growing adoption in the Latin American region among formal and informal businesses.
Regulatory issues were also discussed in the Ripple and FPC investigations. For the majority of payment firms consulted (89%), the lack of regulatory clarity in the crypto sector is a “barrier” to using blockchain technology as a payment instrument.
However, it should be remembered that several countries have moved to regulate the cryptocurrency sector in recent months. Countries such as Venezuela and El Salvador have established comprehensive legal frameworks for crypto assets.
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In addition, countries around the world such as South Africa, Brazil, and Singapore are becoming more regulated. The study determined that companies’ ‘optimism’ for this market can meet a ‘growing appetite’ for ‘better access to and inclusion in financial services’.
He also highlighted that other payment methods based on blockchain technology, such as Central Bank Digital Currencies (CBDC), would improve the global payment system.
Featured image of Unsplash.com charts for Ripple/FPC and TradingView.com.