World Economic Forum Predictions For Crypto In 2023

Crypto Industry's Current State Mirrors Dot-Com Bubble, Says WEF

The World Economic Forum (WEF) describes the potential future of cryptocurrencies and the sector as a whole for 2023 in its most recent study.

Dante Disparte, a representative of the World Economic Forum's Digital Currency Governance Consortium, claimed in a research that was released on January 2 that the current state of the cryptocurrency industry's economy is comparable to the dot-com bubble of 1995. Only the most tenacious firms survived at that time, and the majority of businesses were destroyed.

Position Of WEF On Crypto

The World Economic Forum (WEF) believes that the "crypto winter" of 2022 could mark a turning point for the industry as a whole. The WEF issued a warning that the future of cryptocurrencies would be determined by the regulatory frameworks given by a nation's government in light of the various fallouts experienced by leading crypto enterprises last year.

Multiple significant failures have proven that policymakers who have been raising the alarm about cryptocurrency exorbitant risks without enacting effective rules are correct.

The World Economic Forum (WEF) made the observation in the blog post that countries that take action to regulate emerging industries are likely to shape the future. The WEF also pointed out that shady characters may potentially take advantage of the business as it develops.

Growing Usecases for Crypto

The independent international organization stressed the importance of paying attention to experimentation in the financial services sector while pointing out that the underlying technology of encryption and blockchain has more uses. In this line, the forum specifically mentioned companies like the massive financial firm JPMorgan that are quickly adopting blockchain technology.

The World Economic Forum did point out, however, that, as is the case in any financial market, dishonest actors might possibly co-opt the developing technology for evil purposes. In addition, the forum noted that despite the fact that the cryptocurrency market has seen losses, outlawing the sector might not be the best course of action, comparing it to vices related to the internet in general.

We didn't outlaw email or the internet. The better long-lasting strategy for all disruptive technologies is to balance out their negative impacts by putting them in the hands of responsible users and promoting responsible usage.

Despite the fact that these technologies have the ability to cause a great deal of harm in the wrong hands, the Geneva-based organisation predicted that cryptocurrencies and blockchains will continue to be crucial elements of the modern economic toolbox for the foreseeable future.