The World Economic Forum (WEF) says there are four main factors sparking a tidal wave of crypto adoption across the world.
In a new report, the independent international organization says that interest in cryptocurrencies is growing due to a combination of economic drivers.
“Central bank policies, hyperinflation, and macroeconomic instability have driven volatility and devaluation of local fiat currencies relative to other global currencies before and particularly during the COVID-19 pandemic. This has caused individuals and corporations such as Microstrategy, Tesla and Square to hold bitcoin and other digital monies. It has also inspired increased advocacy by users and awareness among policymakers from the US to El Salvador who are crafting new policies around cryptocurrencies.”
The WEF also notes that remittance costs are eating up a larger-than-ideal percentage of transactions, potentially explaining the growing attention toward P2P (peer-to-peer) systems found in many cryptos.
Another factor driving interest in crypto assets is the creation and rapid scaling of stablecoins