INDUSTRY OUTLOOK differentiate between what factors failed and what didn ’ t .
Blockchain – the technology behind cryptocurrencies – is still intact . One of the most popular cryptocurrency exchanges in the world , FTX , has failed after it misused users ’ funds . We are at a make-or-break point in crypto history that will rely on crypto firms to make a case for the technology that can withstand the current scenario .
Traditional financial ( TradFi ) prioritises profit over everything and thus its institutions systemise their products and services so the best service is only available to the affluent few , blocking entry to others by setting a high minimum investment as a barrier .
This is contended by the fact that there are a vast number of people who don ’ t have access to TradFi services , with 1.7
40 % of customers who pay with crypto are new and their purchase amounts are twice those of credit card users .
billion adults globally still unbanked . Of those who do have the tools to access professional financial services , many cannot bypass the barrier as they are unable to equal the minimum investment levels . In the MENA region , 79 % of young adults are unbanked and 72 % of the lowest-income citizens can benefit from financial inclusion .
Cryptocurrency is the only investment asset that has not been created by a financial institution . Crypto market capitalisation – calculated as the price of cryptocurrencies times the number of coins in the market – stood at some US $ 1 trillion as of 23 July 2022 .
Some trends for 2023 ahead include :
• Stricter regulation will be utilised to minimise the repeat of debacles that have brought down several crypto players recently .
• DeFi , which aims to redefine TradFi products without middlemen www . intelligentfin . tech
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