Sendi Young, Ripple’s MD for Europe, is very optimistic about what this year of 2023 might bring for the crypto industry. According to her, 2022 was a monumental year for crypto, with “many highs and many lows.” Interestingly, Young foresees greater crypto adoption this year despite the industry failures that marked the prior year.
2022 was a monumental year for #crypto with many highs and many lows. It’s a tough industry to forecast, but I wanted to share my predictions for what we can expect from crypto over the next 12 months. Let me know what you think! 💡
— Sendi Young (@sendiyoung) January 9, 2023
First, 2023 might see institutional adoption of blockchain and digital assets accelerate as corporations launch pilots and continue to investigate the technology.
Second, Young predicts increased crypto industry consolidation as healthier companies make acquisitions to plug gaps in their capabilities. Third, in 2023, there might be an increasing trend for cryptocurrency and blockchain firms to be acquired by traditional financial services players as well as established companies from other sectors.
Fourth, Ripple’s top executive expects the sustainability credentials of crypto and blockchain to see continued scrutiny by consumers and policymakers. She believes greater sustainability will be achieved with less energy-intensive blockchains and blockchain-enabled solutions, such as the tokenization of carbon credits.
XRPL was the first major blockchain to become carbon neutral, and its use of consensus makes it much more energy efficient than proof-of-work blockchains.
As reported, Ripple announced a $100 million investment in fighting climate change in the past year.
CBDCs and regulation
Young believes CBDCs will be mature by 2023, as several non-European countries have already publicly committed to launching pilots. Ripple has been making headway in this regard, with its notable partnership with Bhutan’s central bank to pilot a central bank digital currency (CBDC).
Also, 2023 will witness the greater adoption of fiat-backed stablecoins as institutions realize the greater benefits of blockchain technology, such as real-time merchant settlement. The creation of new non-USD fiat currencies will also drive this trend, according to Young.
Lastly, the Ripple executive predicts the entry of crypto regulation in the UK and Europe, and also that MiCA will finally be passed by the European Parliament.