Experts reveal where cryptocurrency is headed in 2022.
ple should start paying attention to trends in stablecoins both as a medium of payments and as a dollar digital currency. The use cases for cross-border payments, aid relief, instant settlement payments are starting to flourish in 2021 and we will see more of that in 2022,” Rachel Mayer, a vice president of product at fintech firm Circle, said in an email.
Transferring assets more efficiently is one of the central values of a stablecoin. This value is powerful for companies that need to move digital assets and cash quickly and efficiently.
“On the payments side, more industries will start adopting stablecoins as a more efficient way to make payments,” Omid Malekan, author of The Story of the Blockchain and a professor at Columbia Business School, said in an email. “Stablecoin volumes will continue to grow, but the share of that volume that is only involved in crypto trading will go down.”
5. New crypto rules appear on the horizon
Washington lawmakers sense that cryptocurrency is a big and important thing. But they are struggling, perceptibly, to understand it. It may only be a matter of time before crypto gets its “series of tubes” moment from a hapless representative out of their element.
In December, executives from six cryptocurrency companies were called to testify before the House Financial Services Committee, where they discussed potential paths for future legislation. Lawmakers in the US have expressed interest in a range of topics — whether stablecoin issuers should be considered banks, when to tax cryptocurrency and how to craft functional rules in a highly technical and complex industry. This is tricky stuff. Creating the right standards will take time.
“I think there’s going to be a lot more conversations around crypto and blockchain,” said Dixon, one of the executives who testified before the House committee. Dixon previously testified on the issue of net neutrality before a House committee during her tenure at Mozilla in 2019 and harbors no illusions when it comes to regulating new technology. Some discourse will be positive and some will be negative, “but I just think that [by] having these conversations, we’re going to see policymakers and regulators be more focused, and hopefully, more traditional businesses will be more focused on that.”
There could be more milestones to reach before Americans see a comprehensive framework for crypto-focused legislation. But if industry leaders and elected officials can work together, regular cryptocurrency users and investors may benefit while environmental and security concerns are addressed.
“It’s important to understand that the cryptocurrency industry wants to be regulated, but wants to ensure that proposed regulatory frameworks are feasible,” said Grigg. “Governments globally are working with industry players to create legislation that protects consumers and fosters innovation.”
As the cryptocurrency industry grows up, it will continue to shift in ways we can’t yet imagine. But one thing is clear: Crypto will be a part of our future.
