Survey reveals U.S. financial institutions increasingly adopting blockchain technology, with B2B solutions representing over 40% of participants. Ripple's Pegah Soltani discusses various use cases.
A recent study conducted by Ripple and the United States Faster Payments Council reveals a growing trend among U.S. financial institutions: an increasing adoption of blockchain technology.
The survey, which involved interviews with over 100 payments executives and leaders, found that more than 40% of participating companies are focused on developing business-to-business (B2B) solutions in the U.S.
Among those already utilizing crypto payment products, 37% have a B2B use case. These solutions include peer-to-peer and account-to-account transfers, as well as payroll services, as outlined in the report.
Pegah Soltani, head of payments products at Ripple, explained, "Companies can leverage blockchain in a variety of different B2B use cases including supply chain management to enhance transparency and traceability, digital identity verification to streamline authentication processes, smart contracts to automate agreement execution, and cross-border payments to facilitate faster and cheaper transactions."
The environmental impact of blockchain technology is a concern for 81% of business leaders. However, there is a need for more education, as only 53% of respondents are familiar with the differences in energy usage between proof-of-work and proof-of-stake protocols.
Overall, sentiment toward blockchain is positive, according to the survey. One participant commented on the value proposition of blockchain and crypto payments, stating, "Value moving at the speed of data with potentially near zero cost speaks for itself."
In other news, concerns over chip shortages and sustainability issues for crypto miners continue to be a topic of discussion.
Riot Platforms, other miners still see chip shortage, ESG regs as risks
Bitcoin (BTC) mining firms are highlighting chip shortages and potential climate-focused regulations as risks as they prepare for the upcoming Bitcoin halving. Riot Platforms, in its 10-K filing on Feb. 23, highlighted over 13 continued risks to its Bitcoin mining profitability, largely unchanged from the previous year. The company stated it will continue paying "higher than usual" costs to obtain and install mining machines until the chip shortage crisis is resolved. Other Bitcoin miners have expressed similar concerns in their annual reports. For example, CleanSpark cited a potential "cryptocurrency hardware disruption" and possible difficulties obtaining new hardware in their 2023 10-K filing. TeraWulf also listed supply chain constraints as a risk factor.