This is what we can expect from cryptocurrency and blockchain in 2023 so be ready
With the numerous victories and breakthroughs in 2021, most crypto enthusiasts were filled with confidence and optimism for the year ahead. However, 2022 was undoubtedly a turbulent and challenging year for the crypto industry, heralded by the arrival of the “crypto winter,” failed algorithmic “stablecoins,” and the domino effect that resulted in a series of implosions and bankruptcies in the industry.
Nonetheless, it is incorrect to say that the industry has only experienced negative trends this year. Globally, we saw more mainstream adoption of cryptocurrency, as well as a greater presence in high-profile sporting events such as The Super Bowl and FIFA World Cup Qatar 2022. More discussions and conversations about blockchain technology have ensued as a result. From lavish crypto events held across the globe to conferences with industry leaders
and regulators, crypto’s prominence in the financial sector has grown steadily in 2022. The blockchain and cryptocurrency industries are still in their infancy, with more untapped potential waiting to be discovered.
Despite the numerous industry upheavals in the last year, it is critical to distinguish between human errors and technological flaws. Failures in 2022 were not caused by flaws in blockchain technology, but rather by faulty judgment and poor decision-making. Here are some key trends to look out for in 2023 as we enter the new year. We can expect better refinement of global regulations and compliance on crypto in 2023. Based on the events of 2022, greater industry regulation is unavoidable, with “smart regulation” essential for the safe custody of cryptocurrency. Previously, at the World Economic Forum’s annual Davos conference in 2022, Prime Minister Narendra Modi called for global cooperation to address the crypto industry’s challenges.
From December 1, 2022, to November 30, 2023, India will hold the presidency of the G-20, an intergovernmental forum that includes some of the world’s largest economies, and one of the presidency’s main priorities will be to build consensus on a policy approach to crypto assets. This opportunity positions India to play a pivotal role in the formation of a policy consensus on crypto assets. More research will also be conducted to better inform the policy consensus. Clearer frameworks for better global regulation, including the implications of crypto assets on the economy and the interaction between banking sectors and the blockchain industry, can be established through policy consensus. A clear and stable regulatory environment can foster innovation and is critical to restoring industry trust and fostering long-term growth.
Increased mainstream acceptance and increased demand for Web3 talent
As regulatory frameworks become more transparent and institutional adoption of cryptocurrency grows, mainstream adoption of blockchain will gain traction. This occurs for a simple reason: establishing clear regulations in the industry positively correlates with increasing investor confidence and certainty in asset allocation. According to a Bank of America (BAC) research report, there has been an increase in the adoption of blockchain technology with real-world applications. Blockchain technology’s decentralized nature enables a seamless and secure data storage system while eliminating the need for third-party dependencies.
More companies and organizations from various industries are becoming interested in the technology and the opportunities it provides. Blockchain solutions are in high demand in the banking, financial services, insurance (BSFI), e-commerce and retail, healthcare, and pharmaceutical sectors. J.P. Morgan executed the first ever cross-border fixed income transaction on a public blockchain in 2022, while Goldman Sachs announced that they were conducting due diligence on numerous distressed crypto projects. The increase in institutional investors in cryptocurrency may result in more use cases for the asset and a positive shift in the current landscape.