At least 5% of business transactions worldwide are expected to use blockchain technology thanks to increased activity in the fintech blockchain market, according to a report by research firm SkyQuest.

According to the report:

“The global blockchain fintech market will reach $2.65 billion by 2028. This growth is due in part to the growing need for transparency and accuracy in financial transactions, as well as the potential of blockchain to improve efficiency and security in banking systems. ”.

Therefore, the blockchain fintech 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 noted that although blockchain technology is already being used by some of the world’s leading banks and financial services companies, there was still more room for its 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 recognized that blockchain would enhance the competitive advantage of financial institutions so that they would be on par with major online providers such as Google and Amazon.

Additionally, blockchain has the potential to revamp traditional banking systems by creating a network of “smart contracts” that would enable automatic payments. As a result, eliminating the need for middlemen creates cost savings for consumers and businesses.

However, SkyQuest noted that key challenges such as regulatory uncertainty and scalability issues needed to be addressed to improve the widespread adoption of blockchain in business transactions.

Meanwhile, HashCash Consultants CEO Raj Chowdhury recently stated that blockchain adoption would continue in the banking and financial services sector based on its inherent ability to tackle fraudulent transactions.

“Innovations like blockchain give public finance managers greater visibility and control of the use of public funds in real time. The efficient use of public money will lead to better services for the public, an economic boost and an improvement for the community as a whole,” added Chowdhury.

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