Innovation in Blockchain Payments

Innovation in Blockchain Payments

Summary

This report explores how the payments industry can benefit from blockchain technology, covering topics including remittances, central bank digital currencies, and asset tokenization.

Although interest in blockchain is on the rise, it is still a new technology that needs to be fully tested before it can be adopted within payments infrastructure. Currently most concepts are at the experimental stage, as developing projects on blockchain can be challenging. A lack of regulation has prevented some companies from integrating this technology within their infrastructures. Meanwhile, developing blockchain projects requires highly skilled workers – something currently in short supply. Despite such challenges, venture capital investment in the sector has grown rapidly from $2.1 billion in 2020 to $14.8 billion in 2021. Investments were mainly in the payments, investment banking, and fintech spaces.

Scope

• Global blockchain revenue was estimated at $4 billion in 2020 and is projected to reach $199 billion by 2030.
• Developing nations and Asian countries are leading in the adoption of digital currencies.
• The emergence of the Metaverse will lead to a new form of digital commerce.
• Asset tokenization via blockchain can be used to digitize physical assets.

• Understand how blockchain technology is being adopted in the financial services industry.
• Understand the advantages and challenges of blockchain technology adoption.