Ripple's UK and Europe General Manager Sendi Young made evaluations on the cryptocurrency ecosystem for 2023.
Young summarized as follows:
“Despite the current bear market, the adoption of blockchain technology and digital assets by institutions is expected to increase as corporations continue to explore and launch pilot programs. The industry may also see consolidation as financially stable companies make acquisitions to fill in gaps in their own capabilities, and as a result of the recent collapse of FTX and other companies. Additionally, there may be an uptick in the number of crypto and blockchain firms being bought out by traditional financial service providers and established companies from other industries. As consumers and policymakers place greater emphasis on sustainability, there will be increased scrutiny of the environmental impact of blockchain and the energy consumption of blockchain solutions. To address this, the tokenization of carbon credits and the adoption of less energy-intensive blockchain systems may become more prevalent. Central bank digital currencies (CBDCs) are also expected to gain momentum as more countries announce plans to launch pilot programs. The collapse of FTX has further highlighted the need for a dependable digital asset for settlements. In 2023, the use of fiat-backed stablecoins is likely to grow as institutions seek to take advantage of the benefits of blockchain technology, such as real-time merchant settlements. This trend may also be driven by the creation of new non-USD fiat currencies. Regulation of the crypto industry is anticipated to come to the UK and Europe. Once the UK’s Financial Services and Markets Bill is implemented, regulators will develop a clear regulatory framework to support the development of the crypto asset sector. Meanwhile, the EU’s Markets in Crypto-Assets (MiCA) is expected to be passed by the European Parliament and although it will not come into effect until 2024, it will set the foundation for Level 2 European Supervisory Agencies to develop rules and standards for the crypto industry…”
