Crypto Adoption: Developments That Accelerated Cryptocurrency Adoption in 2022
The year 2022 was not kind to crypto and Web3. As companies declared bankruptcy, there was a lot of upheaval in the market. Despite the market breakdown and repeated attacks on the sector, especially from legacy media and regulators, there were a few developments that went under the radar.
Let's take a look at some of the events that accelerated cryptocurrency adoption worldwide.
The world population crossed the 8 billion mark in 2022. With this, the number of crypto users worldwide also reached new highs.
According to Singapore-based blockchain company TripleA, the global crypto ownership rate is approximately 4.2% as of 2022, with over 320 million crypto users globally.
According to market research company GWI, up to 10.2% of global internet users aged 16 to 64 hold cryptocurrencies. The majority of these holders live in countries suffering from high inflation or volatility in the value of their fiat currency.
In 2022, the Próspera region of Honduras announced that bitcoin would be considered legal tender there. A legal framework has also been established to allow for the issue of bitcoin bonds.
The British Web3 community rejoiced in 2022 when the High Court of Justice in London declared that nonfungible tokens (NFT) are "private property."
The Financial Services and Markets Bill, which was introduced in July 2022, broadened regulations for stablecoins and gave them a new term: Digital Settlement Assets (DSA).
The measure will provide the Treasury with the authority to regulate DSAs, including payments, service providers, and insolvency procedures.
The Economic Crime and Corporate Transparency Bill, introduced in 2022, suggested "developing authorities to more swiftly and easily seize and recover crypto assets" in order to help people targeted by ransomware attacks.
Also Read: Top 3 Macroeconomic Events That Can Shape Crypto Industry In 2023
Brazil's Regulatory Framework
Brazil established its own regulatory framework in 2022. Brazil's former president, Jair Bolsonaro, approved legislation authorising the use of cryptocurrency as a payment method within the country.
The legislation does not make cryptocurrencies legal tender; however, it provides a legal definition of digital currencies and a licencing framework for virtual asset service providers.
In August 2022, the country's tax authorities reported 12,053 distinct entities having cryptocurrency on their balance sheets. The Central Bank of Brazil is planning to launch a central bank digital currency (CBDC) by 2024.
Also Read: Top Cryptocurrencies To Buy In January 2023 For 10X Returns
United Arab Emirates
In 2022, Dubai adopted a legislative framework for cryptocurrency with the goal of safeguarding investors and creating much-needed worldwide standards for industry governance. Dubai also announced the Dubai Metaverse Strategy. The strategy calls for collaborations in research and development (R&D) by attracting companies and projects from around the world. It also launched Sharjahverse, a metaverse city.
Abu Dhabi issued preliminary proposals regarding NFT trading. They designated NFTs as intellectual property rather than investments or financial instruments, and they authorised the operation of NFT markets through multilateral trading facilities (MTFs) and Virtual Asset Custodians (VACs).
Also Read: Top Ethereum Tokens To Buy in January 2023