They are leading business enterprises and multinationals finally realizing the efficiency of Blockchain technology. Once, Blockchain and cryptocurrencies were considered untouchables in the global market. However, blockchain technology and cryptocurrency have evolved and are an integral part of most financial institutions’ long-term business-to-business (B2B) strategies today.
According to PYMNTS research, 61% of financial institutions felt that cryptocurrency is here to stay and will play a very vital role for the corporate customer. It is also the most referenced cited financial service after payment acceptance.
Corporate entities, are open to the idea of using cryptocurrencies
Research revealed that FIs, like corporate entities, are pretty open to the idea of using cryptocurrencies for their clients. It provides down-to-earth solutions and does not increase complexity. 43% of the businesses felt that adopting cryptocurrency or blockchain technology increased efficiency. The adoption also influenced their development strategies.16% consider cryptocurrencies the most critical influence on how they do business.
Blockchain technology finds wider acceptance
Blockchain technology which is the technology that runs Decentralized Finance, is finding wide applications in diverse fields. For example, it plays a significant role in smart contracts that automate payment processing as deliveries are completed to user authentication for contactless payments.
Blockchain technology and cryptocurrencies are relatively new but already influence businesses, and financial institutions see it as the future of commerce and trade. Be it investment or e-commerce, virtual currencies make payments faster and in real-time. It also makes user authentication easier for consumers, retailers and FIs seeking to remove bottlenecks from in-store payments.
The PYMNTS report sponsored by Circle is based upon a survey of a diverse array of 250 multinational businesses with revenues ranging from $10 million to more than $100 billion conducted between April 7 and April 27, 2021.
Other key takeaways from the report include-
- Digital currencies are a viable alternative for institutional investors, and 93% of FIs opine that clients will eventually use digital currencies for investments.
- 96% of financial institutions already use stablecoins for investing and transactions.
- 20% of multinationals have actively held digital currencies as an asset management tool in recent months.
More and more business houses are using bitcoin and other digital assets for a host of investment, operational, and transactional purposes.