For the World Economic Forum (WEF), the underlying technology of cryptocurrencies and digital assets will remain an “integral” part of the global economy.
The global group forecasted the crypto market’s development in a blog post published on Monday. The World Economic Forum (WEF) emphasised how broadly applicable cryptography and blockchain technologies are, immediately noting their impact on the financial services industry.
According to the study, JPMorgan has gained notoriety for its supportive position in the crypto-verse. However, the bank is no longer alone in its embrace of Web3.com and cryptocurrencies.
The WEF likened cryptography and blockchain technology adoption to those of cybersecurity and digital transformation. The group conceded that the crypto economy is not risk-free like any other financial business. The report did point out, though, that the lack of anonymity in crypto is a drawback.
Happy New Year! Following an annus horribilis for #Crypto in 2022, now more than ever demonstrable utility value is the order of the day. Sharing my @wef #WEF23 reflections on what the future holds and how @circle is navigating turbulence. https://t.co/emR4cHNbu3
— Dante Disparte (@ddisparte) January 2, 2023
The private keys to 94,000 bitcoins taken from Bitfinex were reportedly located in files within an internet account managed by Lichtenstein, leading to the arrest of a couple by federal criminal enforcement agents in New York City earlier this year. The breach occurred in 2016.
According to the World Economic Forum, 2022 is a horrible year for crypto. The value of the market has dropped from over $3 trillion to around $800 billion, losing over $2 trillion.
The group said that recent events—especially the demise of FTX, the third-largest crypto exchange in the world—have undermined user confidence in the sector and attracted the scrutiny of governments worldwide.
The World Economic Forum (WEF) has drawn parallels between the impending crypto market crash of 2022 and the bursting of the dot-com bubble in the early 2000s. They argued that this would transfer crypto technology and blockchain infrastructure to more long-term companies, business models, and use cases.
