The World Economic Forum (WEF) thinks that the technology that underpins cryptocurrencies and digital assets will remain “integral” to the contemporary economy.
In a blog post published on Monday, the multinational group discussed the future of the cryptocurrency sector. The WEF noted in particular the extensive uses of encryption and blockchain technology, noting that their usage in the financial services industry is already noteworthy.
As a test of the tenacity of digital assets and blockchains at the heart of financial services (and other sectors of the global economy) observe what mature financial services businesses and large banks really do, rather than what they claim.
According to the survey, JPMorgan has established a favourable image in the crypto industry, but the bank is no longer alone in Web3 and crypto adoption.
The World Economic Forum connected the use of cryptography and blockchain technology to the acceptance of cybersecurity and digital transformation.
The group admitted that the crypto economy, like any other financial sector, is not risk-free. However, it was emphasized that the transparency of crypto leaves bad actors with few hiding spots.
According to reports, federal law enforcement agents in New York City detained a couple earlier this year after gaining access to information in a Lichtenstein-controlled internet account containing the private keys to BTC 94,000 (USD 4.1bn) stolen from Bitfinex. The breach occurred in 2016.
The WEF also referred to 2022 as “the worst year for crypto” From its all-time high of about $3 trillion, the market capitalization of cryptocurrencies has fallen to roughly $800 billion, a loss of almost $2 trillion.
Recent occurrences, including the collapse of FTX, previously the third-largest cryptocurrency exchange in the world, have damaged user confidence in the business and attracted the attention of global authorities, according to the group.
Multiple large-scale failures have justified policymakers who warned of crypto’s exorbitant hazards but failed to enact effective rules.
Intriguingly, the WEF linked the fall of the crypto market in 2022 to the dot-com bubble bursting in the early 2000s, arguing that it would pass over crypto technology and blockchain infrastructure to more resilient enterprises, business models, and use cases.