Crypto in Davos 2023

The World Economic Forum is an international organization that holds an annual event – a big meeting in Davos, Switzerland. It was established in 1971 to bring together representatives from different spheres: politics, culture, and business. In 2023, the forum took place from 16 to 20 January and discussed such topics as globalization, international politics, economic recession, and environmental problems among many others.

In this article, we are going to look at what the participants of this conference had to say about the Crypro World.

Crypto on WEF 2023

Crypto and blockchain were featured a lot this year, not only during the panels that were dedicated to the sphere but also in the discussion of banking, economics, etc. What is more, the crypto companies held their own, more informal events outside the forum, such as parties, gatherings in private shops and churches, and so on. 

Another thing that definitely attracted everyone’s attention was a bright orange Mercedes-Benz car that had a BTC coin instead of the car’s logo and the phrase “In crypto we trust” printed on the tires and the license plate. It was parked outside the Blockchain Hub.

Central Bank Digital Currencies

CBDCs had their own panel which was held on January, 18. The speakers included representatives of Central banks of such countries as Israel, Peru, and South Africa, as well as financial service companies. The participants pointed out that there are more than 100 nations that look into issuing CBDCs. With that, there are factors that make the process more difficult, such as high inflation rates and geopolitical instability. 

Even though there are many reasons for issuing digital currencies (modernization, efficiency, availability of financial services), the countries should first consider whether or not the citizens are interested in this.

Sustainability and blockchain

The participants of this panel came from different backgrounds: business, politics, and science. However, they all came to the conclusion that the sphere of blockchain is impactful now and will be in the future. That is why more sustainability is necessary. 

There are two aspects in this regard: first, the environment. It is necessary to make sure that technological progress goes in accordance with the methods of preservation of nature. Fighting “greenwashing” is essential.  

Second, different initiatives connected to blockchain have to measure their long-term impact on the Web3 sphere. 

The participants agreed that the education of all people, both younger and older generations, is key when it comes to both aspects.

Metaverse

Metaverse was a big topic of discussion during the conference: two separate panels and a press conference were dedicated to it. Global leaders discussed how instead of being another Web3-related buzzword it should bring “tremendous economic and societal value”. The participants noted that interoperability is the key factor that should determine the further development of the Metaverse. 

Another aspect of the discussion was how the technologies can make existing industries such as retail or healthcare more productive. Innovation can make digital experiences more immersive by using telework, for example. However, the panel admitted that industrialization of the Metaverse will take more time to make sure it is safe and trustworthy.  

Finally, WEF representatives also announced the plans of launching their own Metaverse – Global Collaboration Village. It will be designed to look like the city of Davos; the main goal is to allow collaboration all year round, not just during the forum. The organization is working together with Microsoft on this project.

Crypto regulation

The panel called “Finding the right balance for crypto” was the main event where the topic of crypto was discussed, however, it inevitably came up on various other occasions, too. For example, during the talks concerning the banking sector, speakers discussed the FTX demise. They expressed their concerns and urged tight regulation of crypto equivalent to that of traditional banking.

The crypto panel itself consisted of a representative of a crypto company Ripple (XRP), regulators, including one of the authors of the upcoming European laws (Markets in Crypto-Assets bill), and a lawmaker. The discussion turned out to be quite heated, with much skepticism toward the industry. The overall sentiment was that global regulation is necessary with an emphasis on customer protection.

In conclusion, the crypto sphere understandably causes a lot of disputes on big forums, especially now because the negative events of 2022 are still fresh. However, the fact that it is widely discussed and many initiatives are in motion, both the crypto projects and regulations, gives us the reassurance that despite the hard times, crypto is here to stay, there is no doubt there.