One of the most interesting developments in economics in past decades has been the effort to develop currencies (money) that does not depend on government. From time immemorial, governments have issued currency. It was a key part of their power. Cryptocurrencies are based on the assumption that trust alone will work.
Here are some of the things that are happening for cryptos in 2022:
Sandra Ro, CEO of of Global Blockchain Business Council told Coin Telegraph:
“ In 2022, it will be ‘corporate career risk’ to not have a baseline understanding of cryptocurrencies and blockchain technology. From bankers to corporate executives to politicians, it is imperative that they get on board and seriously consider the implications of blockchain.
Further, 2022 winners will ‘expect the unexpected,’ and adapt to investing, servicing clients and participating in new trends.
In 2021, few expected NFTs to become the killer app, driving mainstream interest and adoption. Web3, the Metaverse and DAOs will enter mainstream curiosity in 2022.
The boring infrastructure stuff is critical. Crypto markets and the blockchain industry are experiencing explosive growth, but to scale, they need common terminology, standards and sound governance, including conflict resolution.
The Global Blockchain Business Council will continue the Global Standards Mapping Initiative in 2022, mapping the regulatory, technical, academia and business states of cryptocurrencies and digital assets.
GSMI is the largest crowd-sourced, open-access crypto and blockchain research project. GSMI 2.0 content, released in November, was the result of eight months’ work from over 200 individuals and 131 institutions, including student researchers and veterans of government, industry, start-ups and regulation.
For 2022, I remain mindful to stick to the original vision of leveling the playing field for many, not a few.”Max Yakubowski, “What’s ahead for crypto and blockchain in 2022? Experts answer, Part ” at CoinTelegraph (January 1, 2022)
It’s basically a challenge to traditional ways of thinking about money. Need currency depend on governments?
In Part 2, Yakubowski reports on technical stuff, via Alan Konevsky of PrimeBlock
Alan is the chief legal officer at PrimeBlock, a sustainable Bitcoin mining operation, infrastructure solutions provider and member of the Bitcoin Mining Council, with locations spread across North America.
“We’re going to see more countries adopting crypto as a legal currency. We’re also going to see central governments coming out and taking their own currencies and putting them on a blockchain. China has already said it is going to do this, which will speed up the real competition for private cryptocurrencies from a payment perspective.
Central bank digital currencies do not present competition from a store of value or inflation protection perspective because it’s still the same fiat currency, subject to the same monetary policy manipulation by central banks. It’s certainly something that is fully digital, transparent, and has both good things and some very scary things that come with it. The hope is that, at least in the United States, the dialogues around CBDCs will happen alongside maintaining the values of our society in mind, including our own privacy and control.
How China versus the U.S. will run it will differ, so the dialogue needs to consciously ask the right questions. There’s a way to get carried away with technology that really ignores the fundamental, social, political, philosophical and legal impacts it could have on society. It’s an immensely powerful tool — I’m not understating or overstating it. The government has a lot of regulatory control of the payment, banking and monetary systems now by regulating important intermediaries like banks and other entities. This is going to be directly impacting us on a micro level.”Max Yakubowski, “What’s ahead for crypto and blockchain in 2022? Experts answer, Part 2” at Cointelegraph (January 2, 2022)
You may also wish to read: How can non-fungible tokens (NFTs) be made to work better? Bernard Fickser offers twelve steps to handling NFTs in a way that dispenses with cryptocurrency-based blockchains and works in ordinary online marketplaces like eBay. In Fickser’s view, NFTs can work if they avoid self-serving cryptocurrency blockchains like Ethereum and enable real-world legal transfers of ownership.