The World Economic Forum (WEF) has reviewed what happened in 2022 in crypto, making several predictions about the future of the ecosystem. Dante Disparte, CSO of Circle, in an article published for the WEF, states that while 2022 has been a terrible year, the building blocks of the industry will continue to be “integral parts” of the modern economic toolkit.
WEF Believes in Crypto’s Resilience
The World Economic Forum (WEF) believes that the disastrous year that 2022 represented for the cryptocurrency industry can lead to growth and recovery of the ecosystem. An article written by Dante Disparte, published on WEF’s weforum.org, explains that while the recent downfall of FTX and the demise of the Terra blockchain affected millions of consumers in 2022 — with the market losing $2 trillion in that period — this has not changed the core of these technologies, which are currently being tested by financial institutions all over the world.
On this subject, Disparte explains:
While the underlying technology of cryptography and blockchain is generalizable to all industries and coordinating activities (collectively the building blocks of Web3), experimentation at the core of financial services, among other sectors, continues unabated.
Furthermore, Disparte cites JPMorgan as an example of this, being a company that publicly has pivoted from being clearly oppositional to crypto and blockchain, to adopting the tech in several of its experimental products and offering crypto to select customers.
Crypto and Internet
Disparte harnesses a commonly used simile, comparing crypto with other ubiquitous tech like the internet and email, which have also been used for illegal and criminal purposes by bad actors. Putting the weight of the malevolent actions on the people using the tools, and not the tech itself, is key in this period for crypto, according to Disparte.
For the WEF, the best course of action to perpetuate crypto and blockchain is to “net out their harmful effects by placing technologies (like all tools) in the hands of responsible actors and encouraging their responsible use.”
In this sense, the author believes that crypto, no matter what, remains a protagonist in the financial world and that while regulation is indeed a necessity, countries able to provide it while maintaining a competitive approach will shape the future of the industry. Disparte concludes that these technologies will continue to be implemented despite what he views as the great harm that has been done by using them irresponsibly.
The WEF has been an active organization when it comes to crypto, launching the Crypto Sustainability Coalition in September last year, with the objective of using Web3 tech to fight climate change.
What do you think about the vision the WEF has for the future of cryptocurrency and blockchain? Tell us in the comments section below.