World Economic Forum believes crypto-currencies will remain a key technology

The World Economic Forum (WEF) has reviewed what happened in 2022 in the crypto space, making several predictions about the future of the ecosystem. Dante Disparte, CSO of Circle, in an article published for the WEF, says that while 2022 was a terrible year, the industry’s building blocks will continue to be “integral parts” of the modern economic toolkit.

WEF believes in the resilience of crypto-currencies

The World Economic Forum (WEF) believes that the disastrous year 2022 was for the crypto-currency industry can lead to growth and recovery for the ecosystem. An article written by Dante Disparte published on the WEF’s weforum.org website, explains that while the recent fall of FTX and the demise of the Terra blockchain affected millions of consumers in 2022 – with the market losing $2 trillion in that time – it didn’t change the core of these technologies, which are currently being tested by financial institutions worldwide.

On this subject, Dante Disparte explains:

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

Furthermore, Dante Disparte cites JPMorgan as an example of this, being a company that has publicly pivoted from clear opposition to crypto and blockchain, to adopting the technology in several of its experimental products and offering crypto to select customers.

Crypto and the Internet

Dante Disparte uses a commonly used analogy, comparing crypto to other ubiquitous technologies like the Internet and email, which have also been used for illegal and criminal purposes by bad actors. According to Dante Disparte, it is essential to place the burden of malicious actions on the people who use the tools, not the technology itself, in these times for crypto.

For WEF, the best course of action to future-proof crypto and blockchain is to “neutralize their harmful effects by placing the technologies (like all tools) in the hands of responsible actors and encouraging their responsible use.“

In this sense, the author believes that crypto, no matter what, remains a protagonist in the financial world and that if regulation is indeed a necessity, the countries capable of providing it while maintaining a competitive approach will shape the future of the industry. Dante Disparte concludes that these technologies will continue to be implemented despite what he sees as the great harm that has been done by using them irresponsibly.

The WEF has been an active crypto-currency organization, launching the Crypto Sustainability Coalition in September of last year, with the goal of using Web3 technologies to combat climate change.