As part of its annual gathering, the World Economic Forum (WEF) published a statement outlining the fate of cryptocurrencies.
The organization admitted that 2022 would be a challenging year for cryptocurrencies since more than $2 trillion in the primarily speculative market has vanished.
Most people believed that the crypto sector and decentralized funding, in general, would fix the financial problems that led to the financial meltdown in 2008. Investors’ confidence in customers and companies that suffered financial losses, meanwhile, began to decline.
Also read, CBDC are Better Financial Tools over Traditional Technology – WEF
As they keep highlighting the risks associated with it, large-scale crypto companies like Celsius, Terra, and FTX have given lawmakers yet another incentive to prioritize crypto laws. But despite all the issues that have plagued cryptocurrency, blockchain technology as a whole has endured.
According to the blog, testing at the center of financial services, among other areas, continues unabated even if the technology involved in cryptography and blockchain is generalizable to all businesses and coordinating activities (collectively the building blocks of Web3).
Observe what the big banks and established financial services companies do, not what they claim, to gauge the viability of digital assets and blockchains at the center of financial services (and other areas of the global economy), the report continues.
Also read, The World Economic Forum expresses Concerns Over Safety in the Metaverse
Cryptocurrency, according to WEF, swiftly penalizes the rebellious and leaves few hiding places for negative actors.
The blog reaffirmed the necessity of lowering the risks associated with cryptocurrencies by giving control of blockchain technology to “responsible parties” and promoting responsible usage of it.
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