What trends might affect crypto’s fate in the finance sector in 2025?
Do you remember the early days of digital currencies and the backlashes they received from different communities? At those times, it was almost illogical to think that they would become popular in sectors like finance. But after several years, that’s actually what’s happening. And you may be wondering how these currencies and their associated technology, blockchain, could affect the finance sector in 2025.
Well, if you are such a one, you need not worry. This article will go into the depths of that discussion while uncovering amazing insights that will leave you enlightened. So, why don’t you hang around and learn?
Looking at the past
Before we can predict the future, it’s important to consider how things have been in the past. For instance, 2024 was a great year for digital currencies, especially after several ETFs were approved and Donald Trump rose to the presidency in the US. In July 2024, the SEC approved the first spot ether ETF, which began trading on the 23rd of the same month. For any serious investor, such moves are very important because they can affect the price of Ethereum and other currencies.
This is because approvals encourage more investors to participate, increasing demand and resulting in higher prices due to limited supply. And as a business seeking long-term success, you’d want to take advantage of such trends to improve your relevance. Remember, as many people invest in digital currencies, they may also want businesses to allow crypto-based transactions. Superoffice CRM claims that catering to such specific needs could make you 60% more profitable because customers can find experiences that perfectly align with their preferences.
If you’re keen, you must have noticed that towards the end of last year, crypto prices, especially Bitcoin, rose significantly. This was mainly attributed to Trump’s win in the US presidential elections. According to some experts, the sector, which has been faced with the challenges of unclear federal policies and hostile action by regulators for years, could actually see changes under this new presidential administration. That may put more pressure on the financial sector to welcome crypto the more.
The growing need for fast and cheap transactions
As technology advances and provides new possibilities, people want to use it to improve their life experiences. For example, why would you go to the bank to queue in long lines when you could simply use your phone to complete a transaction? Such expectations are no different in the finance sector; no one wants their transactions to take ages to process.
In fact, a study by PYMNTs.com notes that almost eight in ten customers claim to be highly satisfied with instant payments. Instant payments could actually become the new norm since, according to the Federal Reserve, about 86% of businesses and 74% of consumers claim to have used them in the recent past. So, why would you want to miss out on the benefits of catering to these preferences just because you don’t offer such experiences?
Crypto offers a great way to get you started—most of the tokens ensure transactions happen within seconds. And the good thing is that infrastructures like Solana are very scalable and can handle multiple processes in a second. Solana alone supports up to 65,000 transactions per second, which can be beneficial for international businesses. On top of that, crypto eliminates the need for third parties, reducing processing costs.
What role does the growing emphasis on online security play?
No one wants to engage in an ecosystem that could compromise their personal or financial information. And now that online attacks are increasing in the finance sector, the need to be safe has become even more apparent. By the way, do you actually know that, according to experts, ransomware attacks in the sector alone increased by 64% in 2023, which almost doubled the 2021 number?
And you may be surprised to discover that the global financial sector has accounted for about 20% of all reported cyber incidents within the past two decades.
All these statistics point to one thing: the growing importance of online security in this sector. Good enough, crypto’s blockchain infrastructure can help strengthen your security efforts. Its decentralized nature ensures that no single party controls the entire network, reducing the chances of data manipulation. Any transaction made is recorded on a distributed ledger, which every participant can access.
In case someone wants to change the transaction details, they will have to change data across all the nodes, which is almost impossible in a well-established chain. Such a heightened level of immutability improves security, as malicious persons can’t tamper with records. Crypto transactions also take advantage of advanced encryption mechanisms that make it difficult for intruders to access information. Given the growing need for security, crypto could continue to make waves in the finance sector because of these benefits.
What is our final verdict?
There’s no doubt that the financial may actually continue opening up to cryptocurrencies in 2025. Given that consumers are seeking fast, cheap and secure transactions, crypto is one of the solutions that financial service providers might turn to.
Surprisingly, a report by Deloitte noted that more than half of these providers considered blockchain as a critical priority. That means that in 2025 and beyond, most of them could actually turn to cryptocurrencies in a bid to stay competitive and relevant.