Recommended reads: February 2022
New ways of conducting economic transactions are taking shape – powered by new technologies, applications, and actors. Who better than the thought leaders of these disruptions to contextualize this change and help navigate these evolving opportunities? Each month we compile a selection of articles and contributions from thought leaders in the field of alternative and digital investments.
In February recommended reads section, we share insights and strategic foresights from some of the industry's leading minds on:
- stablecoins and their regulation,
- crypto bear market,
- increasing institutional presence in DeFi.
Explaining the crypto bear marketAt the start of 2022, crypto entered a bear market, with both Bitcoin and Ethereum down roughly 40% from their all-time highs in November 2021. In a Bloomberg Opinion piece, Niall Ferguson discusses why the crypto industry is losing market value while the big tech industry on Wall Street continued to thrive. He analyses how the crypto winter of 2022 will differ from that of 2018, and makes the case for why the industry will experience a period of expansion and "spark a financial revolution as transformative as the e-commerce revolution of Web 2.0".
StablecoinsStablecoins play a central role in the future of blockchain-based financial services, as reflected in their 450% growth in supply in 2021. The article “Stablecoins, Stability, and Financial Inclusion” by Andreessen Horowitz (a16z Future) provides a comprehensive overview of Stablecoins and outlines the framework for their future regulation, which is just starting to take shape. This Chainalysis article and webinar looks at the US Congres' perspective on stablecoins and examines a corresponding proposal from the US President's Working Group on Financial Markets.
DeFi is on the move to the institutional market
Some of the most conservative Wall Street firms are already invested in cryptocurrencies. Now, the traditional financial world is increasingly seeking exposure to the growth potential of Decentralised Finance (DeFi). This Forbes article argues that industry regulation will support the growing adoption of crypto by traditional players, and speculates on what needs to be done before DeFi can reach its full potential. While it suggests that DeFi is still far from widespread adoption, traditional finance could play a crucial role in supporting the industry as it moves into a new growth cycle.
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