The report says the future of payments and how crypto has poised to play a major role.
Cryptocurrencies, according to reports, will be widely used as payment methods shortly.
According to a recent survey conducted by Ripple and FPC, a payment organization, more than 50% of participants believe that the majority of merchants will begin accepting crypto-poised payments within one to three years. Respondents from the Middle East and Africa are optimistic, believing that the change will occur within the next 12 months, whereas those from Latin America believe that global merchants will accept crypto payments in more than three years.
In this article, we have explained the future of payments and how crypto is poised to play a major role. Read to know more about it in detail.
What does the Report Say?
“Transforming the Way Money Moves” is the title of the report. According to it, nearly 97% of respondents believe that blockchain technology will enable faster financial transactions and that this new-age technology will play a significant role in shaping the future of the payment world. According to the report, digital assets could also transform cross-border settlements.
According to the survey, the rise of mobile payments and central bank digital currencies (CBDCs) has increased trust in cryptocurrencies.
Furthermore, the report identified possible reasons why some people are hesitant to adopt crypto technologies. The lack of clarity on crypto regulations has been cited as the primary reason for hesitating to adopt crypto. Other reasons include a lack of industry acceptance and customer protection concerns, among others.
Indeed, according to Ripple’s most recent report, crypto-related technologies have the potential to become a significant part of the global financial system.
Is Crypto Safe?
China justified its ban by claiming that cryptocurrencies facilitate criminal activities such as money laundering or fraud. For many detractors, the ban confirms the widely held belief that crypto is only for hackers, crackers, and criminals. Others have questioned whether or not cryptocurrency is safe.
The unique appeal of cryptocurrencies is that they are supported by blockchain technologies that use cryptography to operate. This system is thought to be more secure by design than other types of encryptions used in standard online banking, digital wallets, and other peer-to-peer payment services.
Because these platforms are so secure, many people have reported losing their passwords and never being able to access their digital wallets again, in contrast to online banking, which allows you to reset the password with a phone call or an email. Cryptography adds an extra layer of security by making it nearly impossible to counterfeit or double-spend virtual currencies.
As a result, whether or not crypto is safe depends on how you define the term. For two main reasons, the word secure is a better way to describe these transactions. The first is the volatility of the cryptocurrency market. The value of cryptocurrency fluctuates, much like the stock market. Your bitcoin investment could be worth thousands of dollars one week and significantly less the next. We saw this in action following China’s announcement, with bitcoin’s value falling much as a company’s stock would after a publicized scandal, for example. While many forms of cryptocurrency are valued much higher than the average stock, they are far from a “safe” investment due to their volatility.
Traditional currency fluctuates in value daily due to inflation or deflation, but not to the same extent. Usually, the difference is only a few pennies. It is extremely unlikely that you will make or lose a large sum of money overnight. That risk is unappealing to many people.
While the blockchain technology that powers crypto transactions helps to secure these payments, it does nothing to protect against malicious intent. Because these payments are still in their early stages, there is insufficient regulation. This is either a blessing or a curse, depending on whom you ask. On the one hand, cryptocurrency payments can be processed more quickly and with lower fees.
That is one of the most appealing aspects to both businesses and individuals. On the other hand, the crypto space’s somewhat ‘Wild West’ nature has made it appealing to cyber criminals. In some ways, the secure nature of these transactions makes them more difficult to trace. It is appealing to use these transactions, but it also makes it easier to abuse this power.