A recent document released by Ripple and the United States Faster Payments Council revealed that 97% of world leaders believe that cryptocurrency and blockchain technology provides a better system for payments and transactions. Over 300 payment leaders from 45 countries were interviewed to arrive at this conclusion, and the paper was made public on March 2 via Ripple’s Twitter handle.
The report spotlighted the growth of digital assets such as cryptocurrencies in the cross-border remittance space, which has resulted in a 350% increase in the number of crypto users in the past three years. Leading payment companies like WorldPay, Stripe, and PayPal now support crypto transactions, citing benefits such as transparency, lower transaction costs, and faster payouts.
It was also stated that despite the impressive numbers from the usage of crypto tokens, they still cannot be compared to fiat and other existing money movement systems due to two major reasons: regulatory concerns and sustainability.
The report highlighted the leaders’ concerns about the environmental impact of using crypto, particularly Bitcoin. Bitcoin is powered by the Proof of Work consensus mechanism and is known to consume a lot of energy. Digiconomist’s Bitcoin Energy Consumption Index estimated that it takes 1449 kWh to complete one bitcoin transaction, which is equivalent to 50 days of power supply in an average American home.
The White House recently released a framework for regulating cryptocurrencies to reduce the risks and fraudulent activities associated with the assets. Additionally, there are plans to create a digital dollar for citizens within the country. It is believed that this would help stabilize the industry and pave for its widespread acceptance.
The United States Faster Payments Council is an organization focused on facilitating safe global money transfers for Americans. They also address payment issues and adopt faster means of payment.
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