Crypto: 2023, a Year of Contrasts Amid Growing Adoption and Resounding Disappointment

2023 is proving to be a doubly decisive year for the future of cryptocurrencies, marked by significant advances but also spectacular setbacks. It will remain a pivotal year for the crypto ecosystem. Between regulatory clarifications, positive statements from institutions, state-level adoption, and resounding legal cases. An overview of the key events that have advanced the crypto industry, while revealing its persistent risks.

Institutional and State Adoption on the Rise

In the United States, the court decision recognizing that the crypto XRP is not a security has paved the way for a possible re-listing on exchanges like Coinbase. Another positive sign is the financial giant BlackRock initiating the regulatory process to offer a cash-based Bitcoin ETF and Ethereum.

On the geopolitical front, China and Russia have accelerated their economic rapprochement, increasingly using the yuan in their bilateral trade at the expense of the US dollar. This movement is reinforced by the trade alliance between China, Russia, India, Pakistan, and Central Asia.

Furthermore, for the first time, the yuan surpassed the dollar in the volume of cross-border transactions in China. These developments mark a retreat from the dominance of the greenback on the world stage.

Moreover, asset manager BlackRock has initiated the process for offering a Bitcoin ETF. The Federal Reserve has recognized that cryptos appear to have a future as a new asset class. These are all encouraging signals sent by powerful institutions.

Scandals and Missteps Tarnishing the Crypto Industry

Yet in parallel, the crypto ecosystem has seen its share of notable missteps. The highly publicized trial of Sam Bankman-Fried ended with a conviction on all charges of fraud. In Turkey, the CEO of the exchange platform Thodex received a record sentence of 11,000 years in prison for embezzlement.

The on-the-run arrest of Terra’s founder, Do Kwon, and the arrest of SafeMoon’s executives in the United States have also marred the sector’s reputation. These legal cases highlight the enduring dangers associated with greed and the lack of crypto regulation.

In the end, the year 2023 will leave a mixed impression. Cryptos have continued their adoption by the general public and institutions. But at the same time, the missteps inherent to this decentralized world are a reminder of the need for a robust regulatory framework to protect investors.