The World Economic Forum (WEF) has suggested that the crypto industry winter of 2022 could be a turning point for the industry.
The World Economic Forum outlines the future of cryptocurrencies for 2023!
Dante Disparte, chief of the WEF’s Digital Currency Governance Consortium, said in a blog post published Jan.
Indeed, while acknowledging the role of blockchain technology in the overall financial industry, the WEF noted that the future of cryptocurrencies will be driven by the regulatory landscape.
In its blog post, the WEF noted that jurisdictions that are making an effort to regulate the industry are likely to shape the future, suggesting that bad actors can still exploit the industry.
“The countries that enable responsible competition will shape the future. Cryptography and blockchains will continue to be an integral part of the modern economic toolkit, despite the enormous damage these tools can cause when used by the wrong people.”
The role of crypto in the financial industry
The forum noted that the technology underlying cryptography and blockchain has widespread applications, while emphasizing that experiments in the financial services industry are something to consider.
Accordingly, the WEF has selected entities such as banking giant JPMorgan, which are increasingly adopting the use of blockchain.
However, the WEF also acknowledged that risks inherent in any industry involving money will always be present, including the potential for bad actors to misuse technology.
Additionally, while witnessing crypto fund losses, the World Economic Forum stated that banning the industry might not be the right approach, comparing it to general internet-related vices.
“The more enduring approach to all breakthrough technologies is to eliminate their harmful effects by putting technologies (like all vehicles) into the hands of responsible actors and promoting their responsible use,” the agency added.
Interestingly, the lobbying body has suggested that after the effects of the bear market, cryptocurrencies’ promise to right the wrongs that resulted in the 2008 financial crisis may be waning.
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