- Participants at the 2023 World Economic Forum said that blockchain and distributed ledger technology has huge potential.
- Dan Schulman, President and CEO of PayPal (NASDAQ: ), says that blockchain technology has “performed perfectly” despite the cryptocurrency crash.
- NYSE President Lynn Martin said that blockchain could make issuing shares more efficient.
- Davos has seen a significant decline in the presence of crypto companies.
This year’s annual World Economic Forum (WEF) in Davos, Switzerland, saw an additional positive shift in attitudes toward blockchain technology. While crypto companies have not shown up in as large numbers as they have in previous years, many attendees highlighted the potential of blockchain technology.
PayPal President and CEO Dan Schulman, who joined a panel discussing the FTX crash, wanted to differentiate cryptography from underlying distributed ledger technology (DLT).
“It is important not to confuse cryptocurrencies with central bank digital currencies, stablecoins, and DLT…. Schulman said.
Schulman added that despite the cryptocurrency’s crash, “the underlying technology has been working perfectly.” “The promise of a distributed ledger is that it can be faster and cheaper to settle transactions simultaneously without intermediaries. This is something important.”
Lynn Martin, president of the New York Stock Exchange, echoed these comments. She believes that blockchain can make the issuance of stocks and shares more efficient. Moreover, the blockchain can allow for near-instant settlement of transactions.
“There’s a way now that some technologies have been adopted and used to make operations really more efficient,” Martin said.
Panelists agreed that blockchain technology is here to stay, despite the volatility of cryptography and the slow pace of adoption.
However, another upcoming technology seems to have taken the excitement out of blockchain. Speakers Shulman, Martin, and Ronald O’Hanley of State Street said the technology they were most excited about was artificial intelligence (AI).
Fewer crypto companies in Davos this year
Many companies involved in cryptocurrency were notably absent from Davos, suggesting that the market crash was taking its toll. There have been fewer crypto companies in Davos than in the past few years as the markets stumbled from the FTX crash.
The existence of cryptocurrency in the past few years has been impossible to ignore. Crypto companies have taken over stores, shops, and coffee shops. Their marketing was all over the small town where the World Economic Forum hosts its annual meeting. This year, the cryptocurrency presence in Davos was much quieter.
After losing $1.4 trillion in the crypto market crash, crypto companies are becoming more conservative in how they spend the money.
on the flip side
- The presence of a smaller digital currency in Davos may indicate that the recent crash helped orchestrate some of the industry’s excesses. Less spending on marketing could mean that there is more money for developers who actually build new technology.
Why should you bother
Although there were fewer cryptocurrencies at WEF2023, the attitude towards blockchain technology remains positive. This strongly indicates its long-term ability to transform technology and finance.