- In 2022, regulators will look into the crypto sector and hopefully allow developers and users to operate freely.
- Also that year we will see cryptocurrency projects trying to scale and try to attract merchants to make their payments, according to Sam Bankman-Fried.
2021 was a great year for digital currencies, with most cryptocurrencies embracing record levels and prices reaching record levels this year. According to one of the richest and most influential men in the world of cryptocurrencies, 2022 will be a year of disruption in mainstream circles. Regulations, scaling and adoption will further define 2022, according to Sam Bankman-Fried (SBF).
Bankman-Fried is the CEO and founder of FTX, a cryptocurrency and derivatives exchange platform. FTX has grown rapidly in recent years to become one of the largest exchanges in the world. It is also ranked among the most famous brands in the industry thanks to a series of partnerships with companies and iconic events, such as paying $ 135 million for the nomination rights to the Miami Heat court.
SBF, which runs a market-making company called Alameda Research, noted that even as 2022 approaches, the cryptocurrency industry should appreciate the progress made so far.
4) What crypto already does:
a) Solid user box. There are probably ~ 200m crypto users worldwide.
b) Smart contracts. I think it’s hard to overstate how important this was to space: it’s what brought crypto from digital gold, to web3 / metaverse / defi / etc.
– SBF (@SBF_FTX) December 27, 2021
Cryptocurrencies also have a number of potential use cases, including remittances, payments, being a value store, NFTs, social media, DeFi, and many more. In 2021, the industry also saw huge growth in scaling solutions such as Tier 2 networks like Polygon. And then there is the attention that the industry seems to be attracting large numbers.
The market capitalization of cryptocurrency is $ 2.5 trillion, less than Apple or Microsoft. But, what attracts the most attention?
What’s next for crypto in 2022?
Despite its success in 2021, the industry still has plenty of room to grow in 2022, according to SBF.
The largest area in 2022 will be in the regulations. “There was a lot of tension between the industry and the regulators, and both parties left frustration, in many cases,” he said.
This lack of regulatory clarity makes it difficult for the sector to reach its potential. It particularly impressed the sector’s ability to attract institutional regulated players, although this gradually changed in 2021.
The key in this case is to work together to address the current regulatory gaps and allow liquidity to move to the United States, Europe and other jurisdictions.
One of the areas that he believes needs regulation is stability. Regulators should create a reporting and auditing framework that ensures that stable they are supported as they say.
«This would solve 80% of the problems and allow stations to thrive in the country,» says SBF, apparently worth $ 26 billion.
And while it calls for transparency in support of stables, it is closely tied to Tether, a stable that has even been brought to court and found guilty of violating financial laws. To this day, Tether continues to fight legal battles over whether or not it is endorsed. SBF’s Alameda Research is one of the largest recipients of newly mined teddy bears, according to recent research.
17) The goal of all this is to come out stronger.
Emerge customer protection and regulatory clarity in a way that both consumers and institutions feel comfortable interacting with the digital asset ecosystem.
– SBF (@SBF_FTX) December 27, 2021
The 29 – year – old believes that we will see a scale of projects in 2022 to meet demand. One of the leading projects towards scaling is Solana, another SBF – linked project.
Read also: Solana gets 33% and hits Cardano and Tether, but $ 12 million coverage from SOL disrupts project