Financial Industry Is Witnessing A Seismic Shift in Adoption of Crypto Assets; Could Replace Cash Within 10 Years: Deloitte
Satoshi Nakamoto’s original plan of revolutionizing the financial landscape is gradually coming to the fore. According to a report by one of the Big Four accounting firm Deloitte, more businesses and professionals are open to the idea of digital assets playing a role in their operations in the future.
Crypto May Rival or Replace Fiat In A Decade
The research titled Global Blockchain Survey polled over 1,280 financial service industry (FSI) professionals across several regions. The respondents were from the United States, the UK, Brazil, Germany, China, and others. The FSI professionals all agreed that there was a seismic shift in how financial services are being carried out since the advent of blockchain technology.
This prompted 76% of respondents to admit that crypto assets could serve as a strong substitute or outrightly replace traditional cash within ten to ten years. 73% noted that businesses should begin to adopt blockchain-based assets to avoid losing the competitive edge in the fast-paced crypto environment. 97% of a subset labeled FSI Pioneers with active blockchain-focused products noted that leveraging blockchain technology keeps their business competitive.
A total of 81% of respondents acknowledged that distributed ledger technology (DLT) is “scalable and has achieved mainstream adoption.”
Deloitte is a global professional services network operating out of 150 countries. It is part of the Big Four accounting firms, including KPMG, EY, and PwC. Deloitte has been hugely interested in the blockchain space for several years now. The firm has been keeping tabs on the nascent industry for the last four years.
Cybersecurity A Threat For Widespread Crypto Use
Aside from the positives, several participants who were questioned also pointed out a few barriers to its adoption.
71% of respondents said cybersecurity risks were a huge barrier to high-stake industries openly embracing the industry. According to them, the recent offshoot of cybercrimes has greatly curtailed investments in the burgeoning industry.
73% of the FSI Pioneers felt that regulatory uncertainty was the cloak on crypto’s shining armor. According to them, legacy-based financial institutions are still uncertain on regulatory stance given the general lack of regulatory goalposts for good practices in the emerging space.
A further 65% noted that the current financial infrastructure was not rightly positioned to tap into the revolutionary way of doing business that blockchain has facilitated.
Meanwhile, 43% of respondents noted that their businesses are exploring accepting crypto assets as payment methods. Another 45% said they would tokenize their assets as a means to stay up-to-beat with the fast-changing financial space.
Decentralized finance (DeFi) also got a worthy mention, with 44% of participants noting that exposure to cryptocurrencies would enable them to tap into the $85.94 billion industry.