The World Economic Forum (WEF) believes that cryptocurrencies and the technology underpinning digital assets will continue to be an “integral” part of the modern economy.
on a monday blog post, the international organization talked about what the future holds for the crypto industry. The WEF specifically highlighted the wide-ranging applications of cryptography and blockchain technologies, adding that their use in the financial services sector is already notable.
“Indeed, as a test of the staying power of digital assets and blockchain at the core of financial services (and other sectors of the global economy), look at what big banks and established financial services companies do, not what they say.” “
While JP Morgan has earned itself a reputation for its friendly approach towards the crypto sector, the bank is no longer alone in Web3 and crypto adoption, the report said.
The WEF compared the adoption of cryptography and blockchain technologies to the adoption of cyber security and digital transformation. “The embrace of crypto technology is equally inevitable, even if the term sounds like a bad word,” the organization said.
The organization acknowledged that the crypto industry is not as risk-free as any other area involving money. However, it was noted that the transparent nature of crypto gives bad actors few places to hide.
As mentioned, a couple was arrested Federal law enforcement in New York City earlier this year after authorities gained access to files within an online account controlled by Lichtenstein that contained the private keys to BTC 94,000 (USD 4.1 billion) stolen from Bitfinex . The hack happened in 2016.
The WEF also called 2022 “a terrible year for crypto”. Overall, more than $2 trillion in value had evaporated from the crypto market cap, which has fallen from its all-time high of nearly $3 trillion to nearly $800 billion.
The organization noted that recent events, particularly The Fall of FTXWhat was once the world’s third largest crypto exchange has eroded user confidence in the industry and also drawn attention from global regulators.
“Policymakers who have been warning about the extreme risks of cryptocurrencies while failing to enact sensible regulations have been attested to by not one, but several massive failures.”
Interestingly, the WEF compared the crypto market crash of 2022 to the dot-com bubble that burst in the early 2000s, claiming that it will transform crypto technology and blockchain infrastructure into more sustainable companies, business models and uses. Will hand over the cases.
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