What is holding back the use of blockchain technology? – BlockTribune
What is holding back the use of blockchain technology?
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Traditional international payments can be very time and money consuming. Do you know that it takes an average of $ 13 to send $ 200 to another country? This is because payments must be converted to the currency on both sides of the transaction (also known as “cash-in, cash-out”). The process often requires manual processing (including verification of the customer’s identity) and a physical business location.
Using blockchain technology for cross-border transactions is therefore good news for both consumers and businesses: The innovative modern solution provides a faster and cheaper payment experience since it eliminates intermediaries.
PYMNTS research indicates that more people are jumping on the blockchain bandwagon – 23% of consumers who pay friends or family in other countries use at least one type of cryptocurrency. In addition, 13% of them say that cryptocurrencies are their preferred way of money transfers. But while these numbers show promise, they are not enough to promote widespread blockchain adoption.
For blockchain to succeed, one thing must happen. It must be accepted by both the public and the authorities.
The regulatory environments lack clarity
Blockchain has exploded in popularity thanks to tech-savvy entrepreneurs and enthusiasts. According to a new CB Insights report, investors also channeled a record $ 25.2 billion to blockchain companies. However, financial institutions and banks find it difficult to reap the benefits of this booming market because there is a lack of clarity in the regulatory environment.
Conveniently, countries such as China, El Salvador and Malta have already started implementing various regulations. Although their approaches vary, the main objectives are the same – to protect the consumer, prevent money laundering and promote innovation.
As industry becomes more regulated, large institutional actors will flow in, and their participation will benefit the acceptance and growth of the blockchain ecosystem.
Blockchain technology does not appeal to everyone
Blockchain talk can fill your conversations and news feeds; However, the majority of the public is still unaware of the potential use. Only 0.71% of the world’s population currently uses blockchain technology.
The early users of blockchain are mostly young adults: 31% of users are between 18 and 29 years old, and 21% of people are 30 to 49 years old. It is important to note that older users are embracing modern technology more than ever, although many may feel intimidated by the latest developments. Unfortunately, this does not mean that the older generation is likely to own cryptocurrencies or use them for international payments. Only 8% of people aged 50 to 64 and 3% of people aged 65 or over have dipped their toes in the blockchain water.
This clearly shows that as the generation born into this matures, blockchain technology will grow stronger. In addition, it is important to create more user-friendly tools and educate people to attract different demographics.
The blockchain technology itself is innovative enough to make a significant difference in cross-border transactions. Researchers say we need at least five years to reach mainstream adoption rates. As the blockchain is more regulated and the digitally native generation matures, we will see a seismic shift in space.
