Blockchain is growing into a global innovation that has surpassed its initial association with cryptocurrencies.
For example, auction house Christie’s recently announced that its upcoming fine art photography collection will include blockchain-based certificates of ownership for digital provenance purposes.
And from banking to sectors such as payments, blockchain technology is being adopted by mainstream industries to facilitate decentralized, transparent and efficient processes across borders, while also providing programmable functionality. It has gained worldwide appeal due to its ability to offer benefits such as:
However, this growth has not been without its challenges. One of the obstacles to widespread adoption of blockchain is fragmented regional regulations. As regulations evolve and blockchain matures, businesses need to stay ahead of the curve to leverage the potential of this technology.
Each week, PYMNTS tracks trends and themes in efforts to improve the adoption and utility of Web3 in payments and commerce.
Read more: Web3’s This Week’s Headlines on Stablecoins, Tokenization, and Caroline Ellison
Overcoming regulatory hurdles
Recently, news broke that Dubai’s crypto regulator is asking businesses to warn customers about the risks of digital currencies. Regulator Crypto Asset Regulatory Authority will update its guidelines to require companies wishing to sell cryptocurrencies in the UAE to include a new “conspicuous” disclaimer from Tuesday (October 1). Become.
In some cases, regulatory clarity in one jurisdiction can offset challenges in other jurisdictions. Robinhood, for example, is offering crypto remittances to customers in Europe amid regulatory pressure in the United States. According to an announcement on Tuesday (October 1), the service is “one of the most requested features in the region” and will allow customers to deposit and withdraw from more than 20 cryptocurrencies, including Bitcoin, Ethereum and USD Coin. It is said that this will become possible.
Tuesday’s announcement follows reports last week about Robinhood and Britain’s FinTech Revolut potentially collaborating to issue a stablecoin. Both companies declined to confirm the reports.
Stablecoins are digital assets that are pegged to the value of traditional currencies and have gained attention in the cryptocurrency and financial sectors due to their relative stability compared to volatile assets like Bitcoin. I am.
Read more: Can stablecoins drive cryptocurrency adoption across retail and B2B markets?
The expanding role of blockchain
Blockchain technology, once synonymous with cryptocurrencies, is now expanding into mainstream industries, according to a joint study by PYMNTS Intelligence, Solana, and the Solana Foundation, “Blockchain Benefits for Regulated Industries.”
This technology’s distributed ledger offers promising applications in banking, payments, and programmable finance. One recent example is First Abu Dhabi Bank (FAB), which successfully completed a pilot using programmable payments with JPM Coin through JP Morgan’s Onyx on September 24th.
“The success of this pilot opens up the possibility of dynamic, automated funding and payment solutions for FAB and JPMorgan’s mutual customers,” the companies announced. “This solution allows clients to benefit from Onyx’s real-time and/or event-based programmable capabilities.”
Elsewhere, Worldpay is reportedly in talks with blockchain about becoming a validator and validating blockchain transactions. Payment providers aim to gain a deeper understanding of how digital ledgers work and engage with blockchain infrastructure.
Read more: Are blockchain-based smart contracts a smart option for global finance?
“The concept is to become part of the very underlying ecosystem,” said Sanchit Mole, Head of Web3 and Cryptocurrency for Asia Pacific at Worldpay. Worldpay has processed $1.3 billion worth of payments using stablecoins so far this year, up from less than $1 billion in 2023, according to the report.
Worldpay’s exploration of blockchain validation highlights an important point that the payments industry is looking to leverage the power of blockchain. While cryptocurrency adoption remains uneven around the world, industry leaders are preparing for a potential transition to blockchain-based solutions that could ultimately underpin the financial ecosystem.
In another data point, PayPal Holdings now allows U.S. merchants (excluding New York state) to buy, hold, and sell cryptocurrencies directly from their PayPal business accounts. In a September 25 announcement, PayPal Holdings announced that the company has enabled PayPal business account holders to send and receive supported cryptocurrency tokens to and from external blockchain accounts.
Meanwhile, consumer behavior is also changing in favor of digital currencies. According to the PYMNTS Intelligence report “Shopping with Cryptocurrency: Technology-Driven Consumers Driving Market Acceptance,” technology-driven consumers (typically 15% of those who first purchase the latest connected devices) are likely to be regular users of cryptocurrencies. The study showed that 24% of these consumers use cryptocurrencies at least 10 to 20 times a month.
This technology-driven group could be an important demographic for companies seeking to integrate blockchain and cryptocurrency solutions. As these early adopters embrace the convenience and efficiency of blockchain, it is paving the way for broader market acceptance and forcing businesses to rethink their strategies in the digital economy.
Details: blockchain, blockchain payments, Christie’s, cryptocurrencies, decentralized finance, DeFi, First Abu Dhabi Bank, jpm coin, news, paypal, PYMNTS news, Revolt, Robinhood, Solana, Solana Foundation, stablecoins, virtual assets Regulator, Web3, Worldpay
Source link
