In the face of an impending cashless economy, business leaders are bracing themselves for potential disruptions, driven by cryptocurrencies that could wield substantial influence. The safeguarding of customer and client data is emerging as a pressing concern in this scenario.
A survey, recently published by consulting firm Protiviti in collaboration with Oxford University, reveals that roughly a third of executives anticipate the transition to a cashless economy within the next five years. The survey garnered insights from 251 board members, C-suite executives, and other influential business figures across North America, Europe, and Asia. An overwhelming 85% of respondents envision such a future materializing within the next decade, and an equally significant 87% expect digital assets like bitcoin, ether, and tether to have a profound impact on their businesses.
Cory Gunderson, the Executive Vice President of Global Solutions at Protiviti, emphasized that reshaping the global monetary system could trigger “significant disruptions for business operations worldwide.”
As the world inches closer to this digital financial landscape, concerns loom over the ability to protect customer and client data. Nearly nine out of every ten respondents expressed worries about their ability to ensure data security as digital currencies become increasingly integral to the financial ecosystem.
Mike Brauneis, the Managing Director at Protiviti, called for greater efforts to combat fraud and enhance security measures to instill confidence in users. He emphasized the contrast between crypto transfers and traditional banking and credit card transactions, citing the latter’s benefit from decades of regulatory development and insurance frameworks that limit consumers’ liability for unauthorized transactions.
In parallel, regulatory agencies are gearing up to implement enhanced oversight within the payments and cryptocurrency arena. A report by KPMG points to forthcoming efforts aimed at establishing more stringent regulatory frameworks, particularly in areas concerning stablecoins and central bank digital currencies (CBDCs).
Price volatility is another challenge that hampers the widespread adoption of certain cryptocurrencies that aim to serve as reliable stores of value. According to Brauneis, the prices of bitcoin (BTC) and ether (ETH) have surged by 110% and 58%, respectively, year-to-date, but still fall short of their all-time highs recorded in November 2021.
Highlighting the potential benefits of stablecoins, an executive at Pantera Capital argued that they can offer advantages not always provided by bitcoin and ether. Stablecoins can facilitate peer-to-peer transactions and provide a hedge against volatile currencies, reducing the need to place trust in service providers.
The market capitalization of the stablecoin tether (USDT) currently stands at approximately $85 billion, making it the third-largest digital asset by market capitalization, trailing only BTC and ETH.
