The pro-CBDC World Economic Forum (WEF) believes responsible regulation and sustained experimentation will secure the future of cryptocurrencies in the global economy.
In a report published on January 2, 2022, international organizations say that the involvement of traditional banks like JP Morgan in cryptocurrencies will help transform this asset class into “responsible, always-on” internet finance. He says he will mature.
WEF Predicts Institutions to Establish Crypto in Mainstream
The WEF has accused regulators of not taking decisive action to prevent a 2022 meltdown. crypto winterWinter and dotcom bubble burst, WEF comparison Admitted That crypto bear market helped stamp out speculation, putting established institutions and the industry on a solid footing.
Although the WEF has no decision-making powers, it has a great deal of influence over policymakers, politicians and business leaders who gather at its annual event in Davos, Switzerland.
So far, the prospects for that crypto are concentration all the time policy and sustainability issues. The COVID-19 pandemic preceded initiatives by agencies to coordinate global spending on equality and sustainability.
However, some crypto company actively promoted the industry at the 2022 WEF Summit. With Circle CEO Jeremy Allaire XRP Boss Brad Garlinghouse talked On regulation and the future of remittances.
WEF bedfellow IMF predicts recession in 2023
recently praising the US tax infrastructure, inflation Reduction Act, International Monetary Fund Managing Director Kristalina Georgieva Said It is predicted that one-third of the world will be hit by a recession next year.
She hopes the strength of the U.S. labor market will help the world overcome the 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 the WEF. sustainability goals and before criticized cryptocurrency mining As a tool to evade sanctions.
The IMF’s Georgieva has previously spoken at a WEF event that both institutions support central banks. digital currency (CBDC).
Some major US banks surveyed by The Wall Street Journal consent Falling pre-pandemic savings and falling housing market point to a ‘mild’ US recession in 2023, says Americans depleted pre-pandemic accumulated savings from $2.3 trillion to $1.2 trillion. Banks have also tightened their lending policies, a move that accompanies previous recessions.
Forecasts are for the Fed to cut interest rates by the third or fourth quarter. This could mean riskier assets end the year slightly higher.
Will Bitcoin’s currency network become a vital lifeline?
But others see the potential in Bitcoin’s decentralized network and are leveraging blockchain to help businesses survive the recession.
recently Twitter spaceMichael Saylor says software maker MicroStrategy could soon empower businesses with Bitcoin tools Lightning NetworkThaler is MicroStrategy’s Executive Chairman and head of the company’s Bitcoin strategy.
The Lightning Network is a payment network that uses smart contracts to coordinate payments between nodes according to cryptographic rules.
Payments on the Lightning Network are faster than traditional Bitcoin payments, limited only by your internet speed. Channel payments are aggregated to show the final balance of the main Bitcoin network.
Freed from exchange rate shackles, businesses can also charge their site visitors Bitcoin.
Strike was an early proponent of the Lightning Network, enabling businesses to integrate Bitcoin payments using its application programming interface (API). Strike used the Bitcoin network to provide money transfer services to Argentina and El Salvador.
With the recession set to cause significant job losses, a broader implementation of Strike’s API could enable low-cost remittances that could help Argentina. Additionally, MicroStrategy’s corporate efforts may result in faster settlement times for international B2B transactions.
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Disclaimer
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