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The WEF noted that 2022 was a terrible year for cryptocurrencies, largely because more than $2 trillion in speculative market value evaporated.
The World Economic Forum (WEF) predicts that cryptocurrency adoption will surge as a key part of the digital financial system, but warns that 2023 will not be any better.
A global non-governmental foundation, the WEF, said in a blog that the surge in involvement of traditional banking institutions like JP Morgan will help the crypto sector mature, predicting cryptocurrencies will enter the digital financial system. And moving forward, the crypto industry expects a strong recovery this year as new regulations come into force and the crypto space becomes safer.
The WEF has blamed regulators for failing to prevent the collapse of many cryptocurrency businesses that have entered the crypto winter phase. The report states that the current bearish situation in the crypto market is very similar to the dotcom bubble and is certain to bring a new phase to this innovative market by established institutional investors.
The Forum believes that 2022 was a disastrous year for the cryptocurrency industry, which could lead to ecosystem growth and recovery. Chief Strategy Officer and Head of Global Policy Dante Disparte wrote a blog about how his recent FTX demise and Terra blockchain demise impacted millions of consumers in his 2022 On the one hand, the market explains that he lost his $2 trillion in 2022. That time period—this hasn’t changed the core of these technologies that are currently being tested by financial institutions around the world.
The underlying technologies of cryptography and blockchain can be generalized to all industries and coordination activities (collectively the building blocks of Web3), but experimentation at the core of financial services, among other sectors, continues unabated. It continues, says Disparte.
Disparte cites JP Morgan as an example, which has adopted the technology in several experimental products, offering cryptocurrencies to select customers, as a clear opponent of cryptocurrencies and blockchain. A company that has publicly demonstrated what it has become.
For the WEF, the best course of action to perpetuate crypto and blockchain is to “put technologies (like all tools) in the hands of responsible actors and encourage their use in a responsible manner, thereby reducing their harmful effects.” It is to “offset”.
Disparte believes that cryptocurrencies will remain a major player in the financial world no matter what, and while regulation is certainly necessary, the future of the industry lies in countries that can provide regulation while maintaining a competitive approach. We believe that it forms the Disparte maintains that these technologies will continue to be implemented, even though he sees irresponsible use causing great damage.
The WEF noted that 2022 was a terrible year for cryptocurrencies, largely because more than $2 trillion in speculative market value evaporated.
“Millions of consumers and businesses lost money, but perhaps more damaging to the nascent industry and technology was the rectification of the many injustices that led to the 2008 riots. It was the loss of fundamental trust in the promise of virtual finance, which was thought to be the economic crisis.This trust was now fading.”
“On the other hand, policymakers who have sounded the alarm about the excessive risks of cryptocurrencies have failed to craft sensible regulations, as evidenced by not one but several large-scale failures.” wrote Disparte.
The blog says that the bursting of the dotcom bubble in the early 2000s put the future of the World Wide Web and the Internet in the hands of more durable companies. Similarly, perhaps in 2022, crypto technology and blockchain infrastructure will be taken over by more stable hands.
In fact, as a test of the sustainability of digital assets and blockchain at the core of financial services (and other areas of the global economy), what big banks and mature financial services companies do, not what they say. Pay attention,” Disparte wrote. .
“Here are the regulatory and policy conundrums with the epic crypto failure of 2022. Countries that enable responsible competition will shape the future. It will continue to be an integral part of the modern economic toolkit, even though it could have caused great damage when used by people who were ill-equipped,” the blog said.
Copyright © 2022 Khaleeji Times. All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
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