The World Economic Forum outlines the future of crypto in early 2023

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The World Economic Forum (WEF) has suggested that the cryptocurrency industry’s winter of 2022 could mark a turning point for the industry.

According to the agency, the market downturn can be likened to the dot. blog published on January 2.

Indeed, the WEF emphasized that the future of cryptocurrencies will be driven by regulatory outlook while acknowledging the role of blockchain technology in the general financial sector.

In the blog post, the WEF noted that jurisdictions that have made efforts to regulate the industry are likely to shape the future, saying bad actors can still exploit the industry.

Countries that allow responsible competition will shape the future. Cryptography and blockchains will continue to be an integral part of the modern economic toolkit, despite the massive damage these tools can have done when used by the wrong people, the blog states.

Role of crypto in the financial sector

Notably, the forum said the underlying crypto and blockchain technology has wide applications while stressing that experimentation in the financial services industry is something to note.

In this line, the WEF singled out entities like the banking giant JPMorgan, which are increasingly adopting the use of blockchain.

However, the WEF also recognized that the risks inherent in any industry involving money will always be present, including the potential for bad actors to co-opt the technology for nefarious purposes.

Additionally, with crypto witnessing fund losses, the World Economic Forum said banning the sector may not be the right approach, comparing it to the vices of the internet in general.

The most sustainable approach with all breakthrough technologies is to eliminate their harmful effects by placing the technologies (like all tools) in the hands of responsible actors and encouraging their responsible use, the agency added.

Interestingly, the lobbying organization suggested that following the effects of the bear market, the promise of cryptocurrencies to right the wrongs that led to the 2008 financial crisis may fade.

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