The report was written by Circle’s Chief of Strategy and Head of Global Policy, Dante Disparte.
In a Jan. 2 report, the international non-governmental and lobbying organization said that cryptocurrencies will continue to be an integral part of the “modern economic toolkit.”
The WEF acknowledged the calamitous previous year, calling it “terrible”, with more than $2 trillion wasted.
In addition, the Swiss-based political and economic forum accused regulators for failing to “create sensible regulations” but added that they have been vindicated for “multiple large-scale failures” in 2022.
Dante Disparte, Circle’s Chief of Strategy and Head of Global Policy, tweeted that “Following an annus horribilis for Crypto in 2022, now more than ever demonstrable utility value is the order of the day. Sharing my WEF reflections on what the future holds and how Circle is navigating turbulence.”
Positive WEF on Blockchain
Turning to the positives, the report compared the crypto contagion of 2022 to the fallout from dot coms in 2000, resulting in an evolution of the internet towards more enduring enterprises and business models.
“Perhaps 2022 will mark the handover of cryptographic technology and Blockchain infrastructure into firmer hands,” he added.
He stated that big banks and financial service providers need to be watched this year in their approach to cryptocurrencies, “Crypto adoption is equally inevitable, even if the term sounds like a dirty word. Despite all its flaws, this technology continues to be a protagonist in the global financial world.
The WEF stated that there are many examples of good technology being rigged by bad actors, however, with crypto, it has happened at great speed.
In fact, Crypto was spawned by anonymous trading on the dark web in years that were plagued by hacks and theft. Similarly, the early days of the Internet were plagued with viruses and scams, but email and the World Wide Web were not banned.
The WEF report further claims that “the countries that enable responsible competition will shape the future. Cryptography and Blockchains will continue to be integral parts of the modern economic toolkit, despite the great harm these tools may have caused when wielded by the wrong people.”
In conclusion, according to the report, technology will mature and flow into the hands of more responsible players within a strong regulatory framework. In other words, cryptocurrencies are here to stay.
Crypto Market Insights
It may be a while, though, before crypto markets and token prices recover. There is still very low volatility, with total capitalization hovering around the same level at $839 billion, according to CoinGecko.
There has been very little movement in either direction since mid-December, as consolidation continues into 2023.
Bitcoin was trading a bit from weekend levels at $16,686; meanwhile, Ethereum was up 1.5% at $1,214.
By Audy Castaneda
