According to a recent survey conducted by Ripple, nearly all payment industry leaders believe that blockchain and cryptocurrency have the potential to improve the speed and value of payments within the next three years. However, the same leaders also cite regulatory ambiguity as the biggest obstacle to the widespread adoption of crypto payments.
Crypto adoption is accelerating, but lack of regulatory clarity is still creating headwinds in the U.S. for crypto-enabled payment solutions.
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The survey, which was conducted with nearly 300 payments leaders from 45 countries representing a cross-section of global sectors, found that over 50% of respondents believe that lower payments costs – both domestically and internationally – are crypto’s primary benefit.
Additionally, the survey reveals that there is a growing appetite for broader financial access and inclusion, including other crypto-enabled payment solutions like mobile payments and Central Bank Digital Currencies (CBDCs).
90% of Surveyed Leaders Identified Regulations as Crypto Barrier
Although over 50% of respondents believe that most merchants will accept crypto payments within one to three years, only 17% of respondents are currently in favor of crypto payments. Almost 90% of surveyed leaders identified regulatory uncertainty as the primary obstacle to the widespread adoption of crypto payments.
Respondents also cite mild concern around technical investment, with 20% of surveyed providers noting a need for “simplified infrastructure capability” to overcome existing fiat approaches.
Leaders in the industry have voiced their concerns about the absence of regulatory transparency in the crypto industry globally, with the US receiving special attention. The difficulties brought about by this uncertainty are exemplified by Ripple’s ongoing legal dispute with the American SEC. Brian Armstrong, the CEO of Coinbase, recently disclosed that if regulatory clarity is not achieved within the next few years, the exchange may think about leaving the United States.
Even so, certain regions are already taking action to resolve this problem. The Markets in Crypto Act (MiCA) rule to regulate cryptocurrency markets within the European Union has also been adopted by the EU Parliament. The implementation of this system, which is regarded as the most comprehensive crypto regulatory framework internationally, is scheduled for next year.
The Ripple survey, however, indicates that executives in the payment enterprises see enormous potential for blockchain technology and cryptocurrencies to improve the payment industry, but that regulatory uncertainty is the main obstacle to crypto adoption. Although some regions are moving in the direction of more transparent legislation, there is still a lot of work to be done.