As per a report by data platform Pymnts, a big fraction of multinational organizations are adopting digital currencies for overseas transactions, indicating a rise in institutional acceptance of digital assets, while fewer firms are offering cryptocurrency services to their customers.
According to research done by Pymnts with Circle, the peer-to-peer payments technology business behind the USDC stablecoin, 57.6% of multinational corporations are adopting at least one type of cryptocurrency, with bitcoin being the most extensively utilized. Stablecoins are digital currencies that are linked to government-issued money, such as the US dollar.
As per the report, which was based on April polls of executives at 250 cross-border enterprises that produce at least $US10 ($AU14) million in yearly sales, bitcoin was used by 31%, stablecoins by 29%, and ether by 24%.
The primary use cases for digital currencies and blockchain technology, according to multinational corporations, are smart contracts and overseas payments. In doing cross-border commerce, executives also cited lower transaction costs and easier transfer processes as benefits for choosing cryptocurrency over conventional international payment solutions.
There’s a chance that ether will become more popular, with 21% of organizations that don’t utilize the ethereum blockchain token showing interest in it.
Despite widespread enthusiasm, just one out of every ten financial institutions allow their business-to-business clients to utilize cryptocurrencies.
In a statement regarding the survey, Pymnts stated that giving digital currency and blockchain solutions to customers, financial firms need to evaluate a host of technological, commercial, and regulatory variables, and they often face losses about what to focus on.