The World Economic Forum (WEF) has predicted that crypto adoption will surge as an important part of the digital financial system but cautioned that 2023 will not be better.
The WEF, a global non-governmental foundation, said in a blog that the surging involvement of traditional banking institutions like JPMorgan will help the crypto sector to gain maturity, and predicted that cryptocurrencies will enter the digital financial system. And going forward, the crypto industry hopes for a strong rebound this year, as new regulations come into force, making the cryptocurrency space more secure.
The WEF blamed regulatory bodies for their failure to prevent the meltdown of many crypto businesses that resulted in the crypto winter phase. The report noted that the current bear situation of the crypto market is much similar to the Dot-com bubble and surely it will bring a new phase for this innovative market with established institutional players.
The forum believes that the disastrous year that 2022 represented for the cryptocurrency industry can lead to growth and recovery of the ecosystem. The blog written by Dante Disparte, chief strategy officer and head, of global policy, circle internet financial, explains that while the recent downfall of FTX and the demise of the Terra blockchain affected millions of consumers in 2022 – with the market losing $2 trillion in that period – this has not changed the core of these technologies, which are currently being tested by financial institutions all over the world.