Keeping the events of 2022 in mind, it is fairly easy to deduce that the year was horrendous for the crypto market. Not only did cryptocurrencies suffer, but crypto-based organizations were also exposed to exploits and troubled finances. A few of them filed for bankruptcy, and the others had to cut down their employee force. About $2 trillion evaporated from the market. However, the World Economic Forum is optimistic towards cryptocurrencies and the blockchain industry in the longer run.
The World Economic Forum recently issued an article discussing the current condition and future prospects of the crypto space. Moreover, the authority mentioned that all sectors have a sense of risk, especially the ones that involve money. Crypto is responsible for swiftly punishing the offenders but still manages to offer bad actors a space to hide. Countries that promote responsible competition would play a major role in shaping the future.
Apart from that, the World Economic Forum also stated that recent events in the industry have called for more regulatory strictness and action. However, there are previous examples of good and neutral technologies being lumped up with bad actors and greed. According to the authority, all of these are greatly amplified through regulations and technology.
Future Prospects as believed by the World Economic Forum
The global economic authority believes that cryptography and blockchain technology will have major roles in the future. They have the tendency to become the most important part of the modern economic toolkit. However, they can still wreak havoc if they get in the wrong hands. On the other hand, the Platform for Shaping the Future Blockchain and Digital Assets, crafted by the World Economic Forum, promises equality and trust in blockchain technology.
The World Economic Forum claims that everyone in society would benefit from the blockchain’s transformative capabilities. Moreover, it believes that the process of redesigning trust with blockchain in the supply chain would inevitably help supply chain makers to implement blockchain technology. At the same time, they would ensure that such a technology is used in a safe and responsible way. Finally, it is expected that UAE would test the application of digital assets and tokenization soon. These would revamp the way financial institutions work.