In a new report, the World Economic Forum (WEF) outlines the possible future of the cryptocurrency market for 2023. One of the contributors, Dante Disparte, said that the current economic environment of the crypto market is similar to the dot-com bubble of 1995. During this time, most businesses perished, and only the toughest companies survived.
2023 cryptocurrency expectations of the World Economic Forum (WEF)
According to the World Economic Forum (WEF), the “crypto winter” of 2022 was a turning point overall. Due to the crises of the past year, WEF warns that the future of cryptocurrencies will be driven by regulatory frameworks issued by a government:
Alarmed about the extreme risks of cryptocurrencies, policy makers failed to come up with sensible regulations and were justified by not one but more large-scale failures.
WEF also observed that regulators taking steps to regulate the emerging market are influential in determining the future. However, he also noted that unscrupulous actors could exploit or continue to exploit the industry as the market grows.
Growing areas of the cryptocurrency market
The independent international organization states that the technology underlying cryptography and Blockchain technology has broader applications. He stresses, however, that developments in the financial services industry are noteworthy. In this passage, the Forum also selected organizations such as banking giant JPMorgan, which are rapidly adopting the use of Blockchain technology.
However, he noted that as with any financial industry, unscrupulous actors could potentially use emerging technology for nefarious purposes. He also stressed that ‘blocking bans’ are the best move, even though the crypto market is seeing financial losses. He compared this to the vices associated with the wider internet. According to the statement in the report:
We did not ban the internet or email. The more enduring approach to all breakthrough technologies is to eliminate their harmful effects by putting them in the hands of responsible actors and promoting their responsible use.
Despite the potential for these technologies to do serious harm in the wrong hands, the Geneva-based forum states that the modern economic toolkit will continue to use cryptocurrencies and blockchains as key components for the foreseeable future. The highlights of the report are as follows:
- 2022 was a dreadful year with $2 trillion in market value loss.
- We could now see crypto technology and Blockchain infrastructure being handed over to more regulated and established institutions.
- Cryptography and blockchains will continue to be integral parts of the modern economic toolkit.
Meanwhile, the report also talks about the steadily growing volume of stablecoins. Experiments in the center of financial services, among other sectors, continue unabated. As Kriptokoin.com, we have included an important news from Japan about stablecoins in this article.