25/07/2022
Highlight
- 74% of Latin Americans are likely to use crypto for purchases at merchants that accept crypto payments
- Hong Kong, Singapore, China and Taiwan are the countries with the highest number of NFT purchases
- Latin Americans believe crypto is affecting society, both financially and in terms of social well-being
- As many as 70% of financial institutions are interested in using blockchain technology for money transfers and payment transactions
Ripple’s Crypto Trends in Business & Beyond report is based on an international survey comprising: 1) more than 800 global financial institutions across 22 countries; 2) more than 800 respondents with crypto knowledge across 22 countries; 3) more than 700 blockchain developers from nine countries; and 4) secondary research drawing on data collected from specialist companies.
The survey found that Latin America and Asia-Pacific are regions where cryptocurrency is growing significantly. Countries in these regions are also more likely to see digital currencies play a role in society and to embrace them.
Latin American countries are interested in using crypto for transactions, while Asia-Pacific countries show a tendency to purchase digital goods or digital assets as items that satisfy emotional and psychological needs.
In addition, 74% of Latin Americans are likely to use crypto for purchases at merchants that accept crypto payments, compared with only 41% of Europeans. The data also shows that crypto spending at merchants is likely to grow substantially among Latin Americans. This is consistent with Mastercard research conducted the previous month, which found that Latin Americans are highly receptive to using crypto to pay for goods.
At the same time, Latin Americans, like Asians, are interested in and increasingly inclined to purchase items with crypto for emotional and psychological reasons. The data also supports the view that Asians are becoming more interested in buying digital assets for these purposes. Asians purchase assets such as NFTs for collection purposes or as mementos of important moments, at higher levels than other regions. NFT purchases are driven by personal preferences, such as an appreciation for artists, brands or representations of Pop Culture.
Hong Kong, Singapore, China and Taiwan are the countries with the highest number of NFT purchases. The Philippines is the only country with the largest group of people playing Axie Infinity since 2021 (according to Statista).
Meanwhile, 50% of Latin Americans said that crypto is affecting society, both financially and in terms of social well-being, compared with only 35% of Europeans. The study also found that people in Arab countries and North Africa remain relatively uncertain about crypto.
At the financial-institution level, both domestically and internationally for customers, as many as 70% of financial institutions are interested in using blockchain technology for money transfers and payment transactions. Some financial institutions view holding crypto as potentially important for hedging against inflation and protecting against the risk of unfavorable exchange-rate movements.
Using blockchain technology can deliver benefits in many areas, including faster and more secure payments, greater efficiency, rapid processing of data to support operations, and the ability to make payments 24 hours a day, seven days a week.
However, adoption of blockchain and crypto remains limited. There is still significant potential for usage to expand in the future, creating opportunities for financial institutions and organizations. These groups will be able to drive new payment experiences and generate new sources of revenue.
For consumers, the adoption signals for blockchain and crypto are positive and indicate strong growth potential, as consumers are increasingly likely to hold digital currencies or crypto, including for purchases such as NFTs. The more consumers use these technologies, the greater the benefits for companies, which will have more opportunities to expand their businesses and payment options. In the future, if financial and banking institutions at both the global and national levels understand blockchain and use it in practice, this will lead to further innovation and development.
Source:
https://ripple.com/reports/New-Value-Crypto-Trends-in-Business-and-Beyond-2022.pdf