Steadier hands, sustainable companies to lead crypto in 2023, predicts Circle CSO
Several crypto companies have collapsed or filed for bankruptcy by the end of 2022 amid the ongoing global economic downturn. Despite the upheaval, industry analysts are confident the downturn has weeded out fragile and obviously risky businesses in the sector that is already suffering from volatility. More stable hands and more sustainable companies will participate in the crypto sector, said Dante Disparte in a recent article for the World Economic Forum (WEF). Disparte is the Chief Strategy Officer of Circle, the issuer of USD Coin.
Between 2022 and 2023, the entire crypto industry has lost over $2 trillion (about Rs. 1,65,74,700 crore). The Russian-Ukrainian war, the recession following the COVID-19 pandemic, repeated hacking attacks and the collapse of promising crypto projects like LUNA and FTX have reduced investor engagement in the sector.
While companies like CryptoCom and Binance, among others, have resorted to downsizing their respective workforces, companies like BlockFi, Celsius, and Voyager Digital have filed for bankruptcy.
“Policymakers who sounded the alarm about excessive crypto risks, while failing to create sensible regulations, were vindicated by not one, but several large-scale failures,” Disparte’s post said. at the WEF, highlighting how world authorities have more ideas about things. be careful.
Disparte called the crisis in the crypto market a period of broad industrial connection.
“The crypto correction, against a backdrop of broader economic turmoil and risky behavior in capital markets, also vindicates companies that have prioritized a regulatory-first approach and worked to bolster levels of trust, transparency and accountability to other market players,” Disparte noted in a Circle blog post.
Last year saw the adoption of crypto-assets by retail players. From market-leading chains like AMC theaters in the United States to a tea vendor in the Indian city of Bengaluru, many small and large businesses have embraced cryptocurrency payments.
Over 75% of small, medium and large retailers in the US are looking to integrate crypto payment options into their services within the next two years, according to a Delloite report titled “Merchants Getting Ready For Crypto”.
At this point, industry analysts are hoping that the current tough days, as well as upcoming regulations regarding the crypto sector, will make the industry safer overall.
Under its G20 presidency, India is seeking to collaborate with other countries to formulate a crypto rulebook, which would operate uniformly internationally.
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