Maximizing the return on blockchain technology
As blockchain technology continues to move further into the mainstream, it is poised to impact all aspects of society and finance, from payments and investments to data security and record keeping. Most people would agree that investing in blockchain technology is important, especially in the financial industry, but ensuring wise investment is a more complicated proposition. In addition to speed, cost, and security concerns, evaluating investments in blockchain technology also needs scalability, as blockchain’s promised benefits are heavily dependent on choosing a blockchain that can handle growing demand.
Awareness of the potential of blockchain technology is spreading, and the use of cryptocurrency is contributing to it. Thirty-seven percent of all consumers surveyed said they believe transactions using blockchain are faster, but that share jumps to 68% among consumers who own crypto. 82 percent of CFOs and CFOs and 88 percent of merchants said their payments involving crypto are faster than those using other payment methods. At the same time, crypto usage and attitudes toward crypto are more positive outside the United States and other nations with stable economies, as concerns over unstable currencies drive people in other parts of the world to view cryptocurrencies more favorably.
This month “Blockchain Payments Tracker®” examines some of the factors influencing the adoption of and attitudes towards blockchain technology, as well as the data that companies should consider when designing their blockchain technology strategies.
Around the Blockchain Payments Space
Central bank digital currencies (CBDC), a form of cryptocurrency issued by central banks, are gaining increased attention around the world. More than two-thirds of 81 central banks surveyed say they are likely to issue a CBDC or may issue a CBDC in the short or medium term. Additionally, 90% of respondents said they are committed to working with a CBDC. 26 percent said they are piloting CBDC programs, and 60 percent said they are actively exploring the concept of digital currency. There are indications that increased interest in cryptocurrencies and stablecoins, as well as the acceleration of digital transformation that accompanied the pandemic, have contributed to greater interest in CBDCs.
Cryptocurrencies have become a common option for unbanked consumers in the United States. A recent survey conducted by the US Federal Reserve found that 13% of US consumers have used cryptocurrencies to make payments or transfer funds, a significantly higher proportion than the general population, of which only 2% have used cryptocurrencies to purchase products. Among the general population, investment is a more common reason for owning cryptocurrency than buying, with 12% of all consumers saying they own crypto for that reason. Most consumers who own crypto as an investment also report annual incomes of more than $100,000. At the same time, 99% of those who see crypto ownership as a pure investment also have bank accounts.
For more on these and other stories, visit the Tracker’s News and Trends section.
Smile Coin on scalable blockchain for online gaming payments
One of the many uses for blockchain is as a decentralized financial alternative to traditional finance, but the platform used can have a significant impact on speed, cost and scalability. Smile Coin uses the transparency and scalability of blockchain to work with businesses shut out of traditional finance.
In this month’s Feature Story, Nick Bucheleres, CEO of Smile Coin, talks about using blockchain for online gaming payments. 
PYMNTS Intelligence: Evaluating the ROI of Blockchain Technology
Seventy-three percent of financial industry executives surveyed recently expressed concern about losing a competitive edge if their companies do not invest in blockchain and digital assets. While the question of investing in blockchain technology may be moot for many professionals, there is a difference between identifying an investment need and identifying the best approach to ensure a return on investment. This month’s PYMNTS Intelligence takes a look at some of the data driving interest in blockchain technology and the factors helping to ensure companies see returns from their blockchain investments.
To learn more about evaluating ROI in blockchain technology, read Tracker’s PYMNTS Intelligence.
About Tracker
The “Blockchain Payments Tracker®,” a PYMNTS and Algorand collaboration, examines the latest trends and developments shaping the blockchain payments space and the factors affecting the return on blockchain investments.
