Although 2022 has been a dreadful year, the building blocks of the sector will continue to be “integral aspects” of the contemporary economic toolset, according to Dante Disparte, CSO of Circle, in a piece written for the WEF.
The World Economic Forum (WEF) is of the opinion that the ecosystem may thrive and recover from the horrible year that 2022 was for the cryptocurrency sector.
While the recent failure of FTX and the demise of the Terra blockchain affected millions of consumers in 2022, with the market losing $2 trillion during that time, this has not changed the core of these technologies, which are currently being tested by financial institutions all over the world, according to a Dante Disparte article posted on WEF’s weforum.org.
The experimentation at the core of financial services, among other areas, continues unabatedly, despite the fact that the underlying technology of cryptography and blockchain is generalizable to all businesses and coordinating activities (collectively the building blocks of Web3).
The WEF believes that the best way to ensure the continued existence of cryptocurrency and blockchain is to “net out their negative consequences by placing technologies (like all tools) in the hands of responsible actors and encourage their responsible use.”
In this regard, the author is of the opinion that cryptocurrency will always be a major player in the financial world, and that while regulation is necessary, the nations that can offer it while still preserving a competitive edge will determine the direction of the sector.
The Crypto Sustainability Coalition was established by the WEF in September of last year with the goal of using Web3 technology to combat climate change. The WEF has been a proactive organization when it comes to cryptocurrencies.