Ripple’s Study of Latam Countries and Conclusions
Apart from vigilantly contesting disputes with the US securities watchdog, Ripple is also very actively taking part in other crypto-related activities.
In recent activities, Ripple has executed a study wherein it has examined the future scope of crypto adoption by vendors in Latam countries.
The findings of the survey revealed that currently, vendors in Latam countries are a bit reluctant in engaging with cryptocurrencies. Their reluctance is particularly with regard to accepting crypto as means of payment.
However, this does not mean none of the vendors in Latam countries have a problem accepting payments in digital currencies. Instead, there is a moderate population of vendors who are actually accepting crypto payments.
In contrast to Latam countries, the study finds that crypto payment is rapidly growing amongst vendors from other regions of the world.
Vendors’ Delayed Acceptance of Crypto May Develop Into a Major Problem In Future
Findings further show that mass adoption of crypto payment in Latam countries would at least take a further three years.
The people in the particular region are very much prone to adopting cryptocurrencies. However, it is going to take time until they get used to the very concept of cryptocurrencies.
It noted that presently vendors in this region are struggling in applying digital currency solutions. They have to get used to them before they can start offering services in cryptocurrencies and digital assets.
It is all about learning about technology and getting used to it. Once they know the fundamentals of the crypto-blockchain technology, they will be able to navigate through its utilities with quite an ease.
Resultantly, after a period of three years, Latam countries would be lagging behind other countries in terms of providing such solutions.
The study further took note that the crypto industry is the fastest expanding industry, mainly in the Latam region. The people are worried about the inflation rates and the decline in their currencies.
Therefore, they are eager to gain knowledge and understanding of the cryptocurrency industry.
Considering this growth, vendors’ lack of trust in accepting crypto as payment would become a major problem in the future.
The survey suggests that balanced growth is needed to bring conformity with crypto trading and crypto payment options.
Surveyed Respondents
Ripple’s survey was compiled with the assistance of the Faster Payments Council which partnered with Ripple for determining the results.
In the survey, there were at least 300 payment institutions that helped Ripple and Faster Payments Council in arriving at conclusive findings.
The majority of surveyed payment institutions (approximately 67%) suggested that mass adoption of crypto payment is due in Latam countries after 3 years’ time.
When Ripple did a similar survey in Africa, 80% of African vendors suggested the timeframe to be less than 2 years.
Respondents from Africa further suggested that half of the vendors in Africa would start accepting payment payments by 2025.
Europe Ahead of Latam
As regards mass-scale adoption of crypto by vendors, the survey notes that Europe is currently ahead of the Latam region.
Predictions are that after a year or so Europe would be housing the highest number of crypto-accepting vendors in the world.
Similarly, the survey suggests that presently UAE is the best ‘emerging market’, particularly with regard to cryptocurrencies. This region is transforming itself to be the number one place for crypto vendors.
Though UAE has very recently opened doors for crypto, the growth of the industry in this region is phenomenal.
Very recently a renowned crypto platform in UAE has launched a digital payment card for its identified users.
This card enables holders to pay worldwide vendors digitally while converting their digital currencies in the fiats which vendors accept.
Another plus point of crypto payment is that it avoids third-party costs which are regarded by users as an ‘unnecessary financial burden’.
Because of this lower cost effect, crypto adoption is likely to boost significantly in the coming years.