In 2023, the World Economic Forum (WEF) is being held in Davos from January 16 to 20.
Let’s remember how the event went last year. In 2022, the WEF continued on May 22-26. The session was held in person for the first time since 2020. The event was attended by more than 2000 representatives of different countries, in total, participants from 50 countries of the world were announced.
The agenda of last year’s meeting, as we remember, the WEF focused mainly on the Ukrainian conflict. However, this year, according to WEF President Berge Brende, the central issues in Davos will be the global recession, rising energy and food prices, climate change, and special attention will be paid to the economic situation in Europe.
He said that within the framework of the Davos Forum, “several sessions” are planned on the topic of the Ukrainian conflict.
The theme of the January 2023 meeting is “Cooperation in a fragmented World.” The forum’s program will focus on the interaction of the public and private sectors to solve the most pressing global problems, it also calls on world leaders to work together on energy, climate and trade issues.
According to the organizers, Davos will be visited by a record number of participants – more than 2.7 thousand people. The Russian delegation will not participate in the Davos Forum. In the spring of last year, the WEF stopped interacting with persons who fell under sanctions due to the events in Ukraine, and froze relations with representatives of the Russian Federation.
Earlier, the organizers stressed that the forum will be held “against the most difficult economic and geopolitical background in recent decades.”
World leaders, politicians and business representatives will focus on resolving various kinds of crises, including economic and food crises.
WEF’s position on cryptocurrency
The World Economic Forum (WEF) believes that the “crypto winter” of 2022 could be a turning point for the industry as a whole. The WEF has issued a warning that the future of cryptocurrencies will be determined by the regulatory framework established by the government of the country in light of the various consequences faced by leading cryptocurrency enterprises in the past year.
The World Economic Forum (WEF) noted in its blog that countries that take measures to regulate developing industries are likely to determine the future. WEF also pointed out that dubious characters could potentially take advantage of the business as it develops.
Crypto markets have taken off this year, but the ongoing depressed outlook for the global economy may clip those wings.
According to the World Economic Forum (WEF) report of January 16, the International Monetary Fund (IMF) expects that about a third of the world economy will enter recession in 2023.
Why can this affect the value of Bitcoin?
This can have a serious impact on crypto assets, which are usually considered high-risk. If there is less disposable income, then there will be fewer investors in risky assets such as cryptocurrency.
The recession is likely to affect this even more, as higher prices squeeze more wallets, and only the rich can afford to engage in risky crypto investments.
With this in mind, a full recovery of the crypto market in 2023 is unlikely to happen, and consolidation may continue in 2024.
If inflation is under control and the cost of living decreases, the economy as a whole will begin to recover. Only in this case, the retail sector will have enough working capital to risk crypto assets.
Growing Use Cases of Cryptography
The independent international organization stressed the importance of paying attention to experiments in the financial services sector, noting that the underlying encryption and blockchain technologies have more applications. In this line, the forum specifically mentioned companies such as the large financial firm JPMorgan, which are rapidly implementing blockchain technology.
Nevertheless, the World Economic Forum pointed out that, as in any financial market, unscrupulous players can use developing technologies for evil purposes. In addition, the forum noted that, despite the fact that the cryptocurrency market has suffered losses, outlawing the sector is not the best course of action.
Conclusion
The best long-term strategy for all breakthrough technologies is to balance their negative impact by putting them in the hands of responsible users and encouraging responsible use.
Despite the fact that these technologies can cause great harm by being in the wrong hands, the organization predicts that cryptocurrencies and blockchains will remain the most important elements of modern economic tools in the foreseeable future.
