A report from Gartner says that one fifth of large enterprises will be using digital currencies by 2024
Digital currencies divide opinion, not least because of the rollercoaster ride of the value of cryptocurrencies including Bitcoin.
But while there are many potential tripwires for digital currencies - not least from greater regulation - their adoption by large organizations are key to driving mainstream usage.
Institutional investors’ backing is one part of the puzzle, but another is large enterprises. Use of digital currencies is both an opportunity and a risk for these enterprises and their investors.
According to a new report from Gartner, 20% of large organizations will use digital currencies by 2024.
“Increasing 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, VP analyst in the Gartner IT practice. “Digital currencies will be primarily used by these organizations for payment, a store of value and the ability to leverage high-yield investments available in decentralized finance (DeFi) applications.”
Adoption of digital currencies will require robust analysis by chief financial officers with multiple technological, regulatory, legal, and strategic considerations.
Banks have done the prep
However, investors can gain some comfort from the participation of financial institutions and other organizations that have done much of the heavy lifting that will enable enterprises to launch digital currency applications on secure platforms.
“2022 is the year that we expect CFOs to rapidly up their knowledge on digital assets, currencies, and other blockchain applications,” said Alexander Bant, chief of research in the Gartner Finance practice. “When the CEO and Board start asking for the opinion of the CFO, they must have a point of view on the risks and points of differentiation for their organization,” he said. “We are starting to see some Fortune 500 companies map out scenarios for how they will respond if a country or supplier moved to doing business with only digital currency and what steps they would take as a result.”
