The turbulent crypto year 2021 is drawing to a close, so the question arises as to what can await us in the coming year. At the end of the year, therefore, five more or less daring theses for the year 2022.
The year 2021 stands for an NFT boom, a crypto ban in China, the introduction of Bitcoin in El Salvador and, last but not least, the magic word Metaverse. Crypto enthusiasts and investors may now ask themselves which events will dominate the crypto sector in 2022. Below are five theses that could have a major impact on crypto adoption.
1) Bitcoin introduction in El Salvador catches on
There is hardly any other topic at BTC-ECHO that we have reported as extensively as the introduction of Bitcoin as the national currency in El Salvador. As risky as the endeavor might be, the opportunities should ultimately outweigh the risks. Economically weak countries in particular – without a stable currency and a well-developed financial infrastructure – can benefit disproportionately from crypto currencies. In combination with a state subsidy program and appropriate location marketing, welfare gains with simultaneous debt reduction can be realistically represented – provided that Bitcoin exchange rates are stable.
Other Latin American nations struggling with economic and financial challenges comparable to those of El Salvador are already considering introducing Bitcoin. The chances are therefore good that more countries will follow in 2022. The three hottest candidates would be: Paraguay, Panama and Argentina.
2) Tokenized shares for Germany
The blockchain strategy of the old federal government had already provided in 2019 that not only bonds in the sense of debt capital should be tokenized, but also shares, i.e. equity. In expected small steps, Germany was able to record a partial success in June 2021 and with the eWpG launch an initial legal framework for tokenized debt securities. The new federal government is now in favor of taking the next step and enabling shares in token form. With a crypto-friendly FDP in the finance, justice and digital ministries, the chances are good that the necessary legislative process will be a little faster next year. This would be an important step in international competition for Germany as a financial and crypto location.
3) China finally introduces digital renminbi
The digital renminbi has been tested in China for several months. In some regions, the currency has already become a standard payment option. The Chinese government plant to fully introduce the digital yuan now in time for the Olympic Games in February 2022. Even if the start should be delayed a little, it can be expected that the second largest economy will use a tokenized fiat currency for payments in the next year.
4) PayPal and Meta bring out their own stablecoin
Meta, formerly Facebook, has been officially working on its own stablecoin since 2019 – so far without success. Just like the group in the background, the supposedly independent stablecoin organization Libra has renamed itself and is now called Diem. In external communication, Meta therefore relies on its own Novi wallet. This is already used with WhatsApp. It has recently been possible to send money back and forth via the messenger service via the Stablecoin Pax (USDP). It seems more and more likely that the next step will be to issue its own stablecoin. Especially since this could also be used sensibly in the metaverse of meta.
Less in the media focus, but certainly also a suitable candidate for a stablecoin, would be PayPal. For hardly any other company its own stablecoin would be more obvious than for the global payment network. After all, this has already disrupted the market for tedious bank transfers and has various crypto services itself. Your own stablecoin would not only complement the offer, but also secure your own market share.
5) Nike and Adidas bring inverse NFTs into the mainstream
Nike has been looking into the possibilities of NFTs for a long time. So far, however, little is officially known. The first patent application for their crypto ambitions, more precisely Cryptokicks, appeared in 2019. Now, in November, further patent applications were received from Nike, which focus on virtual clothing. With the massive adoption of NFTs in the brand and lifestyle environment, the likelihood that Nike will no longer hold back is increasing.
This is also supported by the acquisition of RTFKT, an NFT design agency, whose transaction took place in December. A few months ago, RTFKT had already developed inverse NFT for sneakers. Buyers will then receive the physical counterpart of their NFT. Competitor Adidas is also daring with its entry into the Metaverse (sandbox), its own NFT collection and its new cooperation with Coinbase into the crypto sector. The chances that we will receive NFTs for our Nike and Adidas sports shoes in 2022 are anything but bad.
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5 theses for the crypto year 2022