76% of global financial leaders believe that digital assets will become a strong alternative to, or potentially replace fiat currencies completely in the next 5-10 years, according to a new survey by world-leading accounting firm Deloitte.
In the research titled Deloitte’s 2021 Global Blockchain Survey, the firm said that its findings affirm that banks should therefore embrace the inevitable digital future. This is due to the anticipated impact that blockchain-based digital assets are expected to have in the transformation of the financial services industry (FSI) from physical to digital.
“Digital assets are disrupting the entire financial market, and every organization and industry that is a customer of the financial services industry (FSI) Financial Instruments, from money to stocks, and the infrastructure for any type of transaction, is changing for the better.”
The new survey reflects the opinions and perceptions around blockchain and digital assets of a polled sample of 1,280 senior executives and practitioners in 10 locations. These are the US, the UK, Germany, Mainland China, Singapore, Hong Kong, Japan, Brazil, South Africa, and the UAE.
Seismic Shift towards Digital Assets Is Underway
A fast-paced shift was observed in three primary areas, deposits and custody, payments, and access to funding. The shift has also given rise to a more dedicated group of FSI pioneers who have prioritized blockchain and digital assets as part of their top five strategies for their companies’ visions.
Under deposits and custody, 63% of FSI pioneers see digital assets having an important role in their organizations, while 63% said that this will happen underpayments. 70% ascertained that digital assets will increase their access to funding sources.
Digital Assets and Crypto Based Solutions Influence FSI Trends
Additionally, the survey determined that digital assets are now driving new fundamentals in FSI. For instance, 81% believe that blockchain scalability advantage has reached mainstream adoption, while 73% believe that organizations that will not adopt digital assets might lose their competitive advantage. Another 80% said their industries stand to gain lucrative or additional revenue streams by adopting digital assets or cryptocurrency-based solutions.
Furthermore, the respondents identified 5 primary roles that digital assets will play in their organizations and their level of importance. 45% believe that digital assets custody will be a very important role, 42% believe that digital assets will become very important as new payment channels or types, while 41% believe that they will use digital assets to diversify their investments and portfolios.
Regulation Is Still A Major Concern
Despite the enthusiasm around digital assets and blockchain, the respondents expressed views about five major areas that require the greatest modification to allow for more adoption.
68% mentioned data security and privacy, 58% said industry-specific regulatory issues, 49% internal controls and financial reporting, 48% mentioned Geography-specific regulations, and 46% expressed concerns over internal/external audits.
Deloitte carried out the research between March 10 and April 10 during the peak of the 2021 bull market.