The World Economic Forum (WEF) believes that the technology that underpins cryptocurrencies and digital assets will continue to be an "integral" part of the modern economy.
on a monday blog post, the international organization spoke about what the future holds for the cryptocurrency industry. The WEF particularly highlighted the widespread applications of cryptography and blockchain technologies, adding that their use in the financial services sector is already notable.
"Indeed, for proof of the staying power of digital assets and blockchain at the center of financial services (and other areas of the global economy), look at what big banks and mature financial services firms are doing. not what they say."
The report says that JPMorgan has built a reputation for its friendly stance towards the cryptocurrency sector, but the bank is no longer alone in adopting Web3 and cryptocurrency.
The WEF compared the adoption of cryptography and blockchain technologies with the adoption of cybersecurity and digital transformation. "Adoption of cryptographic technology is equally inevitable, even if the term feels like a dirty word," the organization said.
The organization recognized that the cryptocurrency industry is not risk-free, just like any other sector related to money. However, he noted that the transparent nature of cryptocurrencies gives bad actors few places to hide.
As reported, a couple He was arrested by federal law enforcement officials in New York City earlier this year after officials gained access to files inside a Lichtenstein-controlled online account containing the private keys of 94,000 BTC ($4 ,1 billion) that had been stolen from Bitfinex. The hack had taken place in 2016.
The WEF also called 2022 โa terrible year for crypto.โ Overall, more than $2 trillion worth of crypto market capitalization evaporated, which has plunged to around $800 billion from its all-time high of around $3 trillion.
The organization noted that recent incidents, particularly the FTX collapseOnce the world's third-largest cryptocurrency exchange, it has eroded user trust in the industry and has also drawn the attention of global regulators.
โLawmakers who have sounded the alarm about excessive cryptocurrency risks, without creating sensible regulations, have been vindicated for not one, but multiple large-scale failures.โ
Interestingly, the WEF compared the crypto market crash of 2022 to the bursting of the dot-com bubble in the early 2000s, stating that it will deliver crypto technology and blockchain infrastructure to more enduring enterprises, business models, and use cases. .
