Bitcoin adoption to grow 50% by 2025, claims this report

by James · March 5, 2023

This report claims that Bitcoin adoption will grow by 2025, but how?

According to the latest report, Bitcoin adoption among merchants is expected to increase by 50% in the next three years. This result is from a examination conducted by the Ripple and Faster Payment Council, which involved 300 payment leaders in 45 countries.

A growing interest in Bitcoin payments globally

The report indicated that blockchain technology has emerged as an alternative to costly payment systems in recent years. Transaction volumes have increased remarkably in the crypto industry, with more than 5.5 million users of crypto payments in the US alone by 2023.

The top four use cases of crypto payments include remittances, cross-border B2B payments, card payments and digital payments. Remittances take the lion’s share of this, with foreign workers turning to crypto to avoid high transaction fees when sending money home to their families.

Related reading: Xapo Bank becomes the first lender to enable near-instant Bitcoin payments

In addition, the growing use of Bitcoin payments by PayPal and Stipe has also significantly increased adoption. Beyond Bitcoin, stablecoins such as USDT and USDC have seen significant adoption due to their low volatility. It is reported that using stablecoins for cross-border payments is 80% cheaper than traditional payment methods.

Around 97% of survey respondents believe that crypto payments will play a major role in faster payments over the next three years. Over half of the executives surveyed expect most merchants to adopt crypto payments during this period.

The Middle East leads the adoption race

According to data from Ripple and FPC, most payment companies believe that merchants globally will use more cryptocurrencies in the near future. As shown in the graph below, the survey results show that 64% of payment company representatives in the Middle East believe that more than 50% of merchants will start accepting cryptocurrency payments in the next three years.

Chart of different regions’ adoption rates. Source: Ripple and FPC.

Europe follows this with 58%, North America 51% and Africa 51%. In contrast, approximately 17% of Hispanic representatives believe that adoption will occur during this period. This is despite the increasing adoption rate in the LatAm region among formal and informal businesses.

The regulation issue was also discussed in the Ripple and FPC investigation. For the majority of payment companies consulted (89%), the lack of regulatory clarity in the cryptoasset sector is a “barrier” to using blockchain technology as a means of payment.

However, it must be remembered that in recent months there has been progress in regulating the cryptocurrency sector in several countries. Countries such as Venezuela and El Salvador have established a comprehensive legal framework for crypto assets.

Related reading: Ripple will appeal immediately if it loses to the SEC, legal chief says

In addition, countries globally, such as South Africa, Brazil and Singapore, are advanced in their regulations. The survey found that the “optimism” of companies for this market may respond to an “increasing appetite” for “access and inclusion to wider financial services.

It also highlighted that other payment methods based on blockchain technology, such as central bank digital currencies (CBDCs), would improve global payment systems.