20 per cent of large firms will use digital currencies by 2024: Gartner report

Twenty per cent of large organisations globally will use digital currencies for payments stored value or collateral by 2024 according to a Gartner reportThe prediction for wider adoption of digital currencies by 2024 is partly driven by the already healthy environment of service providers and offtheshelf solutions available to large enterprises that have identified a specific use case for digital currenciesThe forecast has important implications for Chief Financial Officers CFOs as they assess use cases and potential risks for digital currencies which will be used more in business transactions and grow in overall economic significance in the years ahead the report saidIncreasing mainstream acceptance of cryptocurrencies on traditional payment platforms and the rise of central bank digital currencies CBDCs will push many large enterprises to incorporate digital currencies into their applications in the coming years said Avivah Litan distinguished vice president analyst in the Gartner IT practiceDigital currencies will be primarily used by these organisations for payment a store of value and the ability to leverage highyield investments available in decentralised finance DeFi applications Litan addedMacroeconomic pressures related to ongoing high inflation and its impact on fiat currencies could push more CFOs to explore some digital currencies as a potential store of value for a portion of their reservesWe have noticed an uptick in interest in digital currency and Blockchain applications among CFOs since the start of the year said Alexander Bant chief of research in the Gartner Finance practiceAmong the primary use cases for digital currencies that we have identified there will be no need for most organisations to develop a customised Blockchain application stack said LitanMany large banks payment platforms institutional digital asset custodians and wallet providers have already done the heavy lifting in this area which should provide large enterprises with a minimum of friction in deploying their own digital currency applicationsThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever