Ripple’s European Managing Director Shares 2023 Crypto Industry Forecast
2022 was an eventful year for cryptocurrency. There were massive ups and downs, with some of the most innovative projects the world has ever seen.
With all this activity, it’s only natural to be curious to see what the new year holds. That’s why Ripple Labs’ Managing Director for Europe, Sendi Young, took to Twitter to stake her forecasts for 2023.
Young anticipates no drastic modifications in the current year, though she does not mention Ripple and XRP. However, there are few correlations to draw from her tweets.
Despite the hill market, the Ripple executive expects the uptake of blockchain and digital assets by institutional investors to accelerate. In particular, companies will likely set up new pilot projects to study the technology further.
An Increase In Industry Consolidation
At the same time, there could also be an increase in industry consolidation due to the doom of FTX as healthier firms look to acquire ailing ones to fill voids. “We will catch a glimpse of a rising number of acquisitions of crypto/blockchain enterprises by traditional financial services businesses, as well as more rooted organizations from other industries.”
Young believes that policymakers will take a closer look at the sustainability of the cryptocurrency and blockchain sectors. Young wrote, “an enhanced sustainability can be accomplished with blockchains and related solutions that require less energy, such as tokenizing carbon credits.”
Also, Young emphasizes the importance of Central Bank Digital Currencies (CBDCs) as Ripple’s preferred topic of discussion. The recent crash of FTX has further highlighted the need for nations to embrace a robust digital settlement asset as a safer option than other cryptocurrency solutions.
Concerning this, Young also foretells the outstanding adoption of fiat-backed stablecoins:
“In 2023, there will be a higher uptake of stablecoins backed by fiat currency as institutions take advantage of blockchain technology, such as the immediate settlement of payments to merchants. Furthermore, the emergence of non-USD fiat currencies will also promote this trend.”
Furthermore, Young predicts that the execution of the UK’s Financial Services and Markets Act will put Europe and the UK at the forefront of crypto regulation. He believes that regulators will create a framework for the UK to foster the growth of its cryptocurrency sector.
Thus, creating an enforceable environment for the industry. There is a likelihood for European Parliaments to pass MiCA, as predicted by the Ripple executive.
This legislation will be in effect in 2024. Yet, Level 2 regulators in the EU will start creating practical implementation and standards once the bill is ratified.
Ripple keeps making moves
While Young’s predictions don’t explicitly mention Ripple or XRP, it’s apparent that they’re linked. For instance, Ripple is creating an assortment of durable, environment-friendly, and technology-based carbon credits.
Additionally, Ripple has put together a specialized unit for CBDCs (Central Bank Digital Currencies). It further explained that the team provides a total system for coining, monitoring, settling, and demolishing CBDCs.
A report stated that Ripple is initiating pilot CBDC projects with some apex banks, including the Central Banks of Bhutan and the Republic of Palau. Young’s predictions paint an optimistic picture of the crypto space in 2023.
Crypto is a volatile market; as such, it is crucial to remain vigilant and informed of new developments in the crypto space in the fastest ways possible.
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