WEF Says Institutions Will Boost Crypto Adoption

The pro-CBDC World Economic Forum (WEF) believes that responsible regulation and continued use will secure the future of crypto in the global economy.

In a report published on January 2, 2022, the global body said that the involvement of traditional banks such as JP Morgan with crypto will mature the asset class into “responsible, always-on” internet finance.

WEF Predicts Institutions Will Drive Crypto into the Mainstream

WEF pulls up regulators for not acting decisively to prevent 2022 recession crypto winter, WEF compares winter to dot-com bubble crash accepted That crypto’s bear market helped root out speculation and put the industry on a sure footing alongside established institutional players.

Despite not being endowed with decision-making authority, the WEF exerts significant influence over policy makers, politicians and business leaders who attend its annual event in Davos, Switzerland.

swiss crypto

So far, its crypto outlook is Concentrate on lot policy and stability issues. The COVID-19 pandemic led to an initiative by the body to coordinate global spending on equity and sustainability.

However, many crypto companies Aggressively promoted the industry at the 2022 WEF summit. Circle CEO Jeremy Allaire and XRP boss brad garlinghouse Spoke On the future of regulations and remittances.

WEF bedfellow IMF predicts 2023 recession

While recently praised America for its tax structure and inflation Cut Act, Managing Director of the International Monetary Fund Kristalina Georgieva Said That next year a third of the world will experience a recession.

He is hopeful that the strength of the US labor market will help steer the world out of recession.

Unlike the WEF, the IMF is mandated by the United Nations to promote international coordination of monetary policy, financial stability, and international trade. It also shares WEF’s sustainability goals and is first criticized cryptocurrency mining As a tool to avoid sanctions.

The IMF’s Georgieva previously spoke at WEF events, with both bodies backing the central bank. digital currencies (CBDC).

Several major US banks were surveyed by the Wall Street Journal assume The decline in pre-pandemic savings and the collapse of the housing market point to a “mild” recession in 2023 with Americans losing $2.3 trillion to $1.2 trillion from pre-pandemic savings. Banks have also tightened lending policies, a move that has coincided with previous recessions.

Number of banks with strict lending policies
source: wall street journal

Forecasters expect the Fed to cut interest rates by the third or fourth quarter. This could mean that riskier assets will end the year slightly higher.

Could bitcoin’s monetary network prove to be a vital lifeline?

However, some see potential in bitcoin’s decentralized network and can leverage the blockchain to help companies survive the recession.

recently twitter spaceMichael Saylor Says Software Maker MicroStrategy May Soon Empower Enterprises With Tools On Bitcoin lightning network, Saylor is the executive chairman of MicroStrategy and the head of the company’s bitcoin strategy.

The Lightning Network is a payment network that uses smart contracts to orchestrate payments between nodes according to cryptographic rules.

Payments on the Lightning Network are faster than traditional bitcoin payments and are limited only by internet speed. Channel payments are collected to post the final balance to the main bitcoin network.

Free from the shackles of exchange rates, companies can also charge website visitors bitcoin for repeat visits to their sites.

Strike was an early proponent of the Lightning Network, which allows companies to integrate bitcoin payments using its application programming interface (API). Strike provided remittance services to Argentina and El Salvador using the bitcoin network.

With the recession causing notable job losses, the widespread implementation of the Strike API could allow for low-cost remittances that could help Argentina. In addition, MicroStrategy’s enterprise efforts can foster faster settlement times for international B2B transactions.

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BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.

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