Despite the turmoil in the crypto sector in 2022, Circle’s chief strategy officer says that the technology will change hands to more regulated, established, and regulated institutions.
More Steadier Hands?
According to Disparte, in a post published on January 2, the financial services industry is increasingly using crypto, which he said was a boon for the industry, as it would pave the way for responsible, always-on online finance if the ongoing bear market and exchange collapse.
A lot of consumers and businesses lost money, according to Dante Disparte and the evidence we saw last year. Perhaps, even more, damaging for the nascent technology and industry is that there is a decline in the fundamental trust in the promise of crypto-finance, which was meant to be a correction of many of the mistakes that caused the crisis.
While policymakers have been sounding the alarm about crypto’s excessive risks and yet failing to create sensible regulations, we have seen these concerns validated not only by one but by numerous large-scale failures that occurred at the same time.
There is a belief that by 2022, just as the dot-com bubble burst in the early 2000s handed over the future of the internet to companies that were more durable, business models that were more viable, and applications that were more suitable, perhaps crypto technology and blockchain infrastructure will be passed over to durable hands.
It is true that JPMorgan is hailed as the institution with the most famous volte face in terms of its policy towards crypto and blockchain, but they are not the only financial institution that has embraced Web3 in recent years.
In the same way that boards and executive teams reluctantly adopted their mandates on cybersecurity and digital transformation, it could also be argued that the adoption of crypto technology is similarly inevitable, despite the fact that this term does not feel like a good word to them. Despite all of its flaws, this technology continues to be a leading player in the world of global financial services.
Although Dante and many others believe the regulation can help the crypto industry, like what it did to the tech sector as a whole, it doesn’t seem to be the right solution for a decentralized economy. The new type of economy made by blockchain and crypto is here to change everything.
The regulation concept may remain in the future, but it surely will become decentralized. In other words, we may not see governments regulating industries anymore, but the people themselves will protect the whole operation.