At least 5% of worldwide business transactions are expected to utilize blockchain technology thanks to heightened activity in the fintech blockchain market, according to a report by research firm SkyQuest.
Per the report:
“The global fintech blockchain market will reach $2.65 billion by 2028. This growth is due in part to the increasing need for transparency and accuracy in financial transactions, as well as the potential for blockchain to improve efficiency and security in banking systems.”
Therefore, the fintech blockchain market is expected to record a compound annual growth rate (CAGR) of 3.07% during the forecast period between 2022 and 2028.
The SkyQuest study pointed out that even though blockchain technology is already being utilized by some of the leading global banks and financial services companies, there was still more room for adoption. The research firm noted:
“The technology could be used to improve the flow of data between different institutions, automate processes, and ensure security and transparency for all parties involved.”
SkyQuest acknowledged blockchain would enhance the competitive advantage of financial institutions so that they would be at par with leading online providers like Google and Amazon.
Furthermore, blockchain has the potential to revamp traditional banking systems by creating a “smart contract” network that would enable automatic payments. As a result, eliminating the need for intermediaries leads to cost saving for consumers and businesses.
Nevertheless, SkyQuest pointed out that key challenges like regulatory uncertainty and scalability issues had to be addressed to enhance widespread blockchain adoption in business transactions.
Meanwhile, HashCash Consultants CEO Raj Chowdhury recently stated that blockchain adoption would continue to tick in the banking and financial services sector based on its inherent capability of tackling fraudulent transactions.
“Innovations such as blockchain empower public finance managers with greater visibility and control of public fund utilization in real-time. Efficient use of public money will lead to improved services for the public, economic boost, and improvement of the community as a whole,” Chowdhury added.
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