While 2019 is fading away, we are all starting to see speculations of what 2020 will bring in terms of Digital transformation. We would like to share Ripple team vision of the adoption of Digital assets by institutions.
Their report indicates that for digital assets and associated applications to have long-term staying power, institutional players will have to embrace the technology. Ripple anticipates that just such a wave of institutional adoption will begin in 2020 with more traditional firms deploying digital asset and blockchain-based solutions.
Breanne Madigan, our Head of Global Institutional Markets, says this will be enabled by trusted custody brands such as State Street or Bank of New York becoming involved in digital assets. “The presence of recognized players will increase institutional confidence in the space and pave the way for greater institutional adoption next year,” explains Breanne.
Breanne sees consolidation being driven more by the interest in digital assets and blockchain from institutional brands. She predicts “an increased focus on true volumes, subdued retail interest in exchanges and the appearance of more institutional grade exchanges” will combine to spark a wave of consolidation as companies compete to add volume and customers.
CEO Brad Garlinghouse is even bolder, predicting that half of the top 20 biggest banks in the world will actively hold and trade digital assets in 2020. He is also one of many on the team that believes fiat currencies will go digital in the next year.
While SVP of Xpring Ethan Beard expects at least one central bank to launch a tokenized representation of their fiat currency in 2020, Brad forecasts at least one non-G20 currency—like the Argentine peso or similar—will become fully digitized within the next year.
Worldwide Central banks and financial institutions are piloting different scenarios to “digitized” fiat currencies and transfer on the blockchain.
Looking ahead, Ripple believes that 2020 will reveal new technologies and applications for digital assets that can lead to meaningful, tangible change across a wide range of industries.
Article Joana Foglia – Source https://ripple.com/insights/2020-the-year-of-the-digital-asset/