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The World Economic Forum (WEF) has suggested that the crypto sector winter of 2022 could be a tipping point for the industry.
In a blog post published Jan. 2, Dante Disparte, director of the WEF’s Digital Currency Governance Consortium (WEF), equated the market downturn with the dotcom bubble. was created, where formidable entities stood out and most of the companies were wiped out.
Indeed, the WEF noted that the future of cryptocurrencies will be guided by regulatory prospects, acknowledging the role of blockchain technology in the general financial sector.
In a blog post, the WEF noted that jurisdictions that sought to regulate the industry would likely shape the future, arguing that bad actors could exploit the industry.
“Countries that enable responsible competition will shape the future. Cryptography and blockchain will continue to be an integral part of the modern economic toolkit.
The role of cryptocurrencies in the financial sector
In particular, the forum said that the underlying technologies of cryptography and blockchain have wide-ranging applications, highlighting that experiments in the financial services sector are noteworthy.
In this line, the WEF has singled out entities like banking giant JPMorgan that are increasingly embracing the use of blockchain.
However, the WEF also acknowledges that there will always be risks inherent in any sector where money is involved, such as the possibility of bad actors using the technology for malicious purposes.
Additionally, as cryptocurrencies witness the loss of funds, the World Economic Forum may not be the right approach to outlawing the sector compared to common internet-related vices. said.
“A more permanent approach to any breakthrough technology would offset its harmful effects by placing it (like all tools) in the hands of responsible parties and encouraging its responsible use. to do,” the agency added.
Interestingly, the lobbying organization suggested that the bear market may be eroding the promise of cryptocurrencies to correct the mistakes that caused the 2008 financial crisis.
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