• According to a Deloitte report, 94 percent of financial industry pioneers believe digital assets will replace fiat in the next 5-10 years

  • According to the Deloitte 2021 Global Blockchain Survey, 97 percent of financial services industry (FSI) Pioneers and more than three-quarters of all respondents see blockchain and digital assets as a way to gain a competitive advantage.

    The survey was carried out between late March and early April 2021 in order to gain insight into general attitudes and investments in blockchain and digital assets. It surveyed 1,280 senior executives and practitioners in the United States, the United Kingdom, Mainland China, Germany, Japan, Hong Kong, Singapore, South Africa, and the United Arab Emirates.

    According to the survey, nearly 80% of respondents believe digital assets will be “very/somewhat important” to their respective industries over the next 24 months.

    According to the report, “the business imperative of adopting blockchain and digital assets is growing noticeably, as organizations increasingly accept that their current business models are at risk.”

    There is also agreement among FSI members that digital assets will replace fiat currencies within the next five to ten years, with 76 percent believing this will happen. For FSI Pioneers, this figure rises to 94 percent.

    With the growing interest in the cryptocurrency industry among major institutions and individuals, funds continue to flow into the digital asset market. “The fundamental impact on deposits creates an important opportunity for banks and all industries that hold assets,” according to Deloitte.

    As a result, nearly half (47%) of FSI survey respondents said that custody of digital assets was the most important role for crypto assets in their respective organizations. At 57 percent, safe custody is also the top concern when it comes to holding or transacting in central bank digital currencies (CBDC).

    In terms of the role of digital assets in the respondent’s organization or project, custody is followed by new payment channels, diversifying investments/portfolios, access to decentralized finance platforms, and asset tokenization.

    Approximately six out of ten respondents cited regulatory barriers as one of the most significant barriers to the acceptance of digital assets.

    Meanwhile, nearly 70% identified data security regulation as the most in need of change, and 71% identified cybersecurity as one of the most significant barriers to digital asset acceptance — “suggesting that even the most ardent believers in digital assets have legitimate security concerns.”

    Nonetheless, there is “shared optimism” about future revenue opportunities from crypto solutions, with 80 percent agreeing strongly or somewhat.

    In terms of decentralized finance, 83 percent of FSI respondents believe digital assets will play a significant or minor role.

    When asked which digital asset types will have the greatest impact on their organizations, 42% said stablecoins or CBDCs, 38% said algorithm-driven stablecoins, and 33% said enterprise-controlled coins.

    “Participation in the age of digital assets is not an option—it is unavoidable,” the report concludes, adding, “Leaders are left only to decide how and when their organizations should begin—and how to best leverage digital assets and the new global financial service infrastructure.”

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