The increasing awareness and adoption of cryptocurrencies, NFTs, CBDCs, and stablecoins are poised to reshape the global financial landscape. Institutions ranging from the IMF and EU to the World Bank and leading private entities like JP Morgan recognize the substantial potential of these emerging technologies, which are expected to contribute trillions of dollars to the global economy.
According to a report by Ripple on the crypto market and the digital economy around the world, decision-makers across various industries are eagerly anticipating the substantial impacts of tokenized assets such as Central Bank Digital Currencies (CBDCs), stablecoins, and Non-Fungible Tokens (NFTs).
One noteworthy finding is the positive stance of enterprises towards NFTs. These unique digital assets are gaining traction as valuable tools for businesses, particularly in the metaverse and events/ticketing sectors.
“Enterprises are particularly bullish on using NFTs for business in the metaverse and events/ticketing,” it said. The report suggests that NFTs hold the potential to reshape the way companies interact with their audiences and manage digital assets.
CBDCs, stablecoins, and crypto usage
Furthermore, compared to the previous year, respondents to the report expressed increased expectations for the rapid impact of CBDCs and stablecoins. This reflects the growing recognition and demand of both CBDCs and stablecoins among consumers today.
Central Bank Digital Currencies (CBDCs) are digital currencies issued by a country’s central bank. They are similar to cryptocurrencies, but their value is fixed by the central bank and equivalent to the country’s fiat currency.
Stablecoins are a type of cryptocurrency whose value is pegged to another asset class, such as a fiat currency or gold, to stabilize its price. They aim to provide an alternative to the high volatility of the most popular cryptocurrencies, including Bitcoin.This has made crypto investments less suitable for common transactions
When it comes to specific use cases, “cross-border payments and consumer-to-business payments are the top-ranked use cases for both CBDCs and stablecoins.” These digital assets promise to streamline transactions, reduce costs, and enhance efficiency in these critical areas.
Ripple also reveals that over 80% of global finance leaders expressed their intention to incorporate cryptocurrencies, CBDCs, and stablecoins into their business operations within the next three years.
As the year goes by, more businesses are seeing the need to explore the crypto space. A typical example is the launch of a stablecoin by PayPal in August. This indicates the growing acceptance and recognition of the benefits of digital currencies within the finance sector.
As the world of finance and business continues to evolve in the digital age, Ripple’s report affirms the growing significance of tokenized assets and cryptocurrencies as integral components of the global economic landscape.