Leading crypto news platform Coindesk published an article on their top five predictions for the world of cryptocurrency in the year 2023  – Here’s our summary of it.

2021 was acclaimed as the “Year of the cryptocurrency”. However, 2022 saw the downfall of the industry as markets crashed, inflation rose, crypto companies shut down, and many industry leaders were left either bankrupt or on trial by legal authorities.

However, 2022 was also the year that saw the maximum social mentions and adoption by the general public, as well as the highest employment rates with 82,200 hirings across multiple crypto-related domains.

Here are our top five predictions for 2023 when it comes to the digital economy.

Only good crypto companies will survive

2023 will witness a natural selection of the crypto landscape. Meaning, only good-intentioned organizations will be able to survive the market and come out stronger on the other side. Meanwhile, incompetent firms conducting fraud or risky business will either reshape their company or simply fade away.

Currently, institutional investors including Softbank, Sequoya, and Temasek are preparing to implement additional controls, risk management, reality checks, and transparency, in order to gain back the reputation of the cryptocurrency market.

Crypto regulations established across the world

Regulators across Asia, Europe, and the rest of the world are framing regulations for crypto. Currently, the European Union is voting on and implementing the Markets in Crypto-Assets Regulation (MiCAR/MiCA) to regulate transactions related to crypto and digital assets.

In Asia, different nations are approaching crypto regulations uniquely. For instance, Hong Kong aims to improve retail access to crypto in 2023, while Singapore wishes to tighten regulations due to major losses for investors. Meanwhile, South Korea is battling the effects of the Terra downfall, and India plans to drive behaviour via tax policies.

However, the US is yet far away from being a regulatory regime. Coindesk states that the Securities and Exchange Commission and the Commodity Futures Trading Commission to the Democrats, the Republicans, alongside Congress, will put up an entertaining show in 2023.

The rebirth of NFTs and metaverse

Metaverse is bigger than a 2023 project. The incoming year will mark the beginning of fresh metaverse experiences including new use cases in enterprise, education, and healthcare amongst other sectors. With developing identity technology alongside AR/VR advancement, the metaverse will find a way into our daily lives in smaller practical doses.

Similarly, NFTs have a lot of utility to offer in supply chains, logistics, healthcare, real estate, retail, and more. In 2023, NFTs will have the opportunity to truly shine as a digital proof of authenticity and provenance, deriving value by digitalizing operations.

CBDCs will be on the rise

At present, 80% of the central banks across the world are planning to launch their own Central Bank Digital Currency (CBDC). With commercial banks already interested in collaborating with central banks and software partners, 2023 will see CBDCs as a priority for mass adoption.

China’s digital yuan is already a great success in the country. The Bank of Japan will schedule a launch with other banks. Additionally, Turkey announced a CBDC launch in 2023, while the European Central Bank works on a rulebook for the digital euro launching in 2023.

Whales will invest heavily in crypto

Crypto’s market performance directly links to global economic sentiments. With improved circumstances, we might experience an increased number of institutional investments in the crypto industry.

Blue chip funds such as KKR and Hamilton-Lane and large-cap market players including JPMorgan, HSBC, Goldman Sachs, and Fidelity will invest heavily in the tokenizing space with growing mergers and acquisitions activity.

Posted Date: May 26, 2023