The World Economic Forum Believes Crypto Will Remain Key Technology

The World Economic Forum Believes Crypto Will Remain Key Technology

The World Economic Forum (WEF) has reviewed what happened in 2022 in the crypto sector, making several predictions on the future of the ecosystem. Dante Disparte, CSO of Circle, states in an article published for the WEF that while 2022 has been a terrible year, the building blocks of the industry will continue to be "integral parts" of the modern economic toolkit.

WEF Believes in Crypto’s Resilience

The World Economic Forum (WEF) believes that the disastrous year that 2022 represented the cryptocurrency industry can lead to the ecosystem's growth and recovery. An article written by Dante Disparte, published on WEF’s weforum.org, 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 USD 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.

Disparte explains:

"While the underlying technology of cryptography and blockchain is generalizable to all industries and coordinating activities (collectively the building blocks of Web3), experimentation at the core of financial services, among other sectors, continues unabated."

Disparte also cites JPMorgan as an example of a company that has publicly shifted from being anti-crypto and anti-blockchain to adopting the technology in several of its experimental products and offering crypto to select customers.

Crypto and the Internet

Disparte harnesses a commonly used simile, comparing crypto with other ubiquitous technologies like the internet and email, which have also been used by bad actors for illegal and criminal purposes. Putting the weight of the malicious actions on the people using the tools, and not the technology itself, is key for crypto, according to Disparte.

For the WEF, the best course of action to perpetuate crypto and blockchain is to "net out their harmful effects by placing technologies (like all tools) in the hands of responsible actors and encouraging their responsible use."

The author believes that crypto, remains a protagonist in the financial world and that while regulation is indeed a necessity, countries able to provide it while maintaining a competitive approach will shape the future of the industry. Disparte concludes that these technologies will continue to be implemented despite what he views as the great harm that has been done by using them irresponsibly.

The WEF has been an active organization when it comes to crypto, launching the Crypto Sustainability Coalition in September last year to use Web3 technology to fight climate change.

What is your take on the WEF’s vision for the future of cryptocurrency and blockchain? Please post your comments.