Cryptocurrencies and digital assets are gaining more institutional importance as global society moves towards a cashless future.
In the report "Executive Outlook on the Future of Money, 2033 and Beyond”, prepared by the consulting company Protiviti and the University of Oxford, after interviewing 251 executives from different companies in North America, Europe and Asia, several business leaders pointed out the main advantages and challenges of cryptocurrencies and why they could incorporate these digital assets into their business models.
According to the report, the overwhelming majority of business leaders, 85% of those interviewed, believe that cash will no longer be a necessity in the next decade and that Cryptocurrencies could enjoy greater relevance that nowadays.
Several of these leaders agree that cryptocurrency innovation and, in general, the digitalization of economies, will dissolve the need for cash, which could be replaced by one or more of the existing and emerging digital currencies on the market.
However, most also cited challenges surrounding the new digital economy that can pose major risks to customer privacy and data security.
The impact of cryptocurrencies on business in the next decade
Cryptocurrencies are an emerging and innovative technology that encompasses great potential and also great risk. Nevertheless, they are digital assets that are playing a fundamental role in the modernization of economies, the report noted.
From decentralized cryptocurrencies like Bitcoin to central bank digital currencies or CBDCs, to stablecoins, these are new forms of money that will have a major impact on the economies and businesses of the future.
In fact, according to the report, nearly 88% of business leaders interviewed by Protiviti and the University of Oxford believe that Crypto assets will become increasingly relevant to your business over the next 10 yearsHowever, many of these business leaders, 59% of those interviewed, are more focused on central bank digital currencies, as they are issued and regulated by a central bank.
Furthermore, 79% of business leaders surveyed for the report believe that cryptocurrencies need to be adequately regulated to ensure the security and protection of users and investors.
The main advantages of cryptocurrencies for new business models
Among the main advantages that the 251 business leaders interviewed pointed out for incorporating cryptocurrencies into their businesses, they highlight: efficiency and comfort when carrying out operations.
43% of respondents found that cryptocurrencies offer a more convenient and efficient way to make payments and send transactions.
Other advantages of cryptocurrencies, which were pointed out by executives, are:privacy, security and cost reduction of commission.
North America leads interest in crypto assets
Regarding the interest in cryptocurrencies and digital assets, the report highlights that they are the North American and Asia-Pacific executives, as well as the youngest executives in companies, those who are more enthusiastic about cryptocurrencies and the innovation that this new form of money represents.
This is in contrast to European top executives and older company managers, who are less interested in cryptocurrencies and digital forms of money.
The challenges of transitioning to a cashless society
Concerns about businesses' ability to protect their customers' data are on the rise as society moves toward a cashless future.
Despite cryptocurrencies and digital assets being presented as an imminent future, most companies feel they are not prepared for the transition to a cashless digital society. Business leaders who participated in the survey pointed to infrastructure challenges, privacy and, in particular, customer data security as the main obstacles to moving towards a more digital society.
On these concerns, the report explains that cryptocurrencies like Bitcoin, which operate in a decentralized and without intermediaries, offer a very high level of protection and security, because the cryptographic techniques they use make them “almost impossible to counterfeit or spend twice”.
Regarding stablecoins, the report highlighted that these are digital currencies whose value is tied to that of the fiat currencies that back them and that CBDCs are a mix of fiat money and cryptocurrencies, since they use blockchain technology like the latter, but are issued in a centralized manner and it is the issuing central bank that sets their value, as is the case with fiat money.
In conclusion, after analyzing the preferences and opinions of business leaders, Protiviti and the University of Oxford assure that We are entering an era of financial disruption, which is being marked by cryptocurrencies and digital assets as an emerging form of money, which more people are willing to explore.
The report also concludes that we are in an early phase of disruption, so challenges related to digital infrastructure, security and privacy still persist, which must be resolved to move towards the digital economy.
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