2021 was quite the year for the crypto space as a large number of investors were seen to be inclined towards digital assets. Despite the price fluctuations seen for digital currencies such as Bitcoin and Ethereum, the Whales noticeably made big investments.
Many institutional investors were also seen to be in favor of cryptocurrencies, which highlighted the significance of the asset class.
Considering this shift in the financial system all over the globe and improved regulatory clarity, it is now anticipated that 2022 could be the year for enhanced crypto adoption on an institutional level.
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Could 2022 Be the Year for Increased Crypto Adoption?
Sam Bankman-Fried, the founder of the FTX exchange seems to be quite optimistic when it comes to institutional adoption rates for crypto in 2022.
In a recent interview, he spoke about institutional adoption, crypto regulations and Metaverse. According to Bankman-Fried, the regulators have provided clarity regarding crypto adoption. This can inspire more and more institutions to move towards adopting crypto in 2022 and the years to follow.
Even though the crypto markets were not as bullish as many had expected by the end of 2021, the founder of the FTX exchange still seems pretty optimistic.
“The things that make me optimistic basically are more regulatory clarity in the US and globally which I think could help a ton on institutional adoption.”
Sam Bankman-Fried continued to state that regulatory clarity is a major factor that can boost the adoption of crypto. This is because if the institutions are clear about the regulations, they will find it easier to move towards crypto.
It can be a long process for institutions to completely shift to crypto and may take a few years. However, the initial steps can very well be taken in 2022.
Several different governments have been working on their regulatory frameworks for digital assets, which can be really helpful for institutions.
Bankman-Fried is also optimistic regarding the adoption of crypto, due to his interaction with different institutions.
He stated in his interview.
“Basically every large financial institution I’ve talked to, every large bank, every large investment bank, pension funds, they’re all eyeing this sector.”
According to Sam Bankman-Fried crypto will also play a significant role in the Metaverse, thanks to the non-fungible tokens (NFTs) in video games.
What Should Crypto Investors and Traders Know?
The value and significance of digital assets cannot be denied, despite the ups and downs seen in their prices.
The crypto assets have made quite the mark, which is why a vast majority of people are inclined towards this asset class. Analysts and crypto enthusiasts are optimistic about crypto adoption on a global scale, however, it may take some time as mentioned earlier.
There are numerous crypto assets in the world and the digital currency you choose to purchase depends on your personal preference. However, it is essential that you choose the best crypto exchange that supports the digital currency you want to buy.
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