Crypto solutions company Ripple has just published a new report into crypto trends in business. The report highlights the blockchain-driven Internet of Value that transcends national borders and which enhances or replaces existing ways of doing business.
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According to Ripple, blockchain and cryptocurrency technology, together with central bank digital currencies (CBDCs) are expected to have a big impact on institutions.
The various technologies such as crypto and NFTs are being leveraged by enterprises, governments and in different ways, as new use cases come to light.
However, given the nascent state of these new technologies, and the inability of many to fully understand the possibilities, together with the ponderous application of regulations, the crypto industry is having trouble surmounting these barriers to more widespread adoption.
Cryptocurrencies, NFTs, and CBDCs
Ripple’s report gives credit to NFTs for a lot of the consumer interest in cryptocurrencies and blockchain. Although it does point out that the user experience with NFTs has not been easy due to “infrastructure and design.”
In Ripple’s estimation, and more controversially from a crypto point of view, CBDCs will add to what has been done by cryptocurrencies and stablecoins and thereby “drive the blockchain flywheel”.
However, the following statement in favour of crypto really gives a bold summary for the effect of tokens such as cryptocurrencies:
“There are hints that finance leaders across both Financial Institutions and Enterprises are again seeing tokens, including crypto, as an even more powerful force than the foundational blockchain technology which drives them”
Following on from the general buy and sell patterns taken by tokens when they are first launched, Ripple believes that in some cases this gives way to more sophistication and enhanced programmability, which is now happening with NFTs and CBDCs.
Most valued use cases
Institutions see most value in cryptocurrencies for portfolio management, which includes hedging, and secondly for payments. Wider uses around such technologies as DeFi are still not being investigated by most institutions.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
