The adoption of cryptocurrencies in the world has grown exponentially in the last year. Latin America is now the epicenter of this interest. However, in other regions of the world this focus of interest in cryptocurrencies is also observed. And here we will point out those factors that drive this global interest in cryptocurrencies.
Likewise, interest in cryptocurrencies has increased in the last year. This along with the prices. For its part, Bitcoin has more than tripled in the last 12 months. While the cryptocurrency of Ethereum has multiplied by seven. In addition, many other major cryptocurrencies have also posted strong gains, after they made the news.
It is worth mentioning that the company’s Global Cryptocurrency Adoption Index ranked 154 countries based on three main metrics. China and the US fell in the rankings, mainly because the volume of peer-to-peer trade declined. However, it is obvious that the global interest in cryptocurrencies continues to grow.
World Economic Forum: Factors Driving Interest in Crypto
The World Economic Forum (WEF) explained in a new report that interest in cryptocurrencies is growing. This is due to a combination of social and economic factors.
“Central bank policies, hyperinflation and macroeconomic instability have driven volatility and devaluation of local fiat currencies. This relative to other global currencies, before and particularly during the COVID-19 pandemic. This has caused individuals and corporations like Microstrategy, Tesla and Square to have Bitcoins and other digital funds.
Additionally, the World Economic Fund report explained that this has inspired more advocacy by users. And raising awareness among lawmakers from the US to El Salvador, who are crafting new policies around cryptocurrencies.
At the same time, it also indicates that the costs of remittances are consuming a higher percentage of transactions than the ideal. Which potentially explains the growing attention to P2P (peer-to-peer) systems found in many cryptos.
For its part, another factor driving global interest in cryptocurrencies is the rapid creation and scaling of stablecoins. This as a much more efficient medium of exchange.
It is important to know that, the WEF highlights the wide range of different applications that various digital assets provide. This is in addition to an effort to become greener, and consume less energy. Which makes people pay more attention towards cryptocurrency markets.
Finally, one of the most important conclusions of this report is that cryptocurrencies can allow transparency. And also provide an opportunity for regulators actively seeking to shift more transactions from the informal to the formal economy.
The World Economic Forum Report
If you want to read more about this interesting report from the Alpen Sheth World Economic Forum, click here.