Challenge 2023: what will happen to cryptocurrencies and where it will be important to focus

For this 2023, assured Morales, headwind expected from central banks’ monetary tightening of the different countries that “it will be slower or deeper depending on the evolution of inflation levels”. And, in turn, he stained it will be necessary to put the magnifying glass on the advances in the regulation in the mattermainly in Europe, of which the final approval of the MiCa Law is scheduled for July.

However, “the forecast of clear rules for this 2023 causes that more companies and institutions are interested in blockchain technologywhich stimulates the general growth of the ecosystem and, considering the floor from which the crypto markets start, it can be very attractive conditions for investors who want to position themselves in the long term, at prices well below those of last year“, hill.

Since Binance Research pointed out 6 key points to pay attention to this year:

• The macroeconomy. Central bank policies, global growth data and recession risks will set the stage for macroeconomic factors to serve as a tailwind or headwind for cryptocurrencies in 2023. Correlation between traditional markets and crypto could increase .
• Some DeFi and NFT projects they may look outside of the crypto ecosystem to find additional growth opportunities given the muted crypto activity. The integration with real world assets it could be in the form of asset tokenization or the acceptance of real world assets as collateral.
• The narrative of liquid staking gain strength. As we get closer to the date that staked ETH can be withdrawn, there will be greater awareness, understanding, and willingness to participate in staking.
• Utility is key to NFTs. To drive the next phase of adoption and move beyond profile image NFTs, we expect more innovation on the soulbound token front, integrations with blockchain games, partnerships with web2 companies, and other real-world use cases.
• improvement of gameplays. We expect more attention from developers to improve the gameplays of the next generation of blockchain games. Teams that are able to successfully create AAA-quality games will have a better chance of attracting players.
• greater clarity normative. In the last year and a half, we have seen substantial progress in creating greater regulatory certainty for the cryptocurrency space.

Cryptocurrencies in the region and how far the mass reaches

According to the latest study conducted by Chainanalysis in 2022, Latin America is the second largest region in the world in growth of crypto transactions and Argentina, one of the most active countries in terms of volume of transactions globally. The use of cryptocurrencies among Latin American countries increased by 40% in 2022 compared to the previous year.

About, Julián Colombo, CEO of Bitso Argentinaconsidered that “the conditions of the local markets, marked to a greater or lesser extent by inflation and devaluation, make crypto, and especially stable currencies or digital dollars, a great ally for value preservation“.

Regarding the trends in the use of individuals, Colombo explained that “today, our customers can pay with cryptocurrencies for their everyday consumption through interoperable QR paymentsobtain returns on your holdings, send money from one country to another quickly and easily, easily connect with the US and local banking system, and so many other services that go beyond trading.”

Lastly, in the corporate segment, the CEO of Bitso Argentina said that “the Business are recognizing the impact that the use of cryptocurrencies can have for streamline your operations, reduce transaction costs and improve payment processing timesThe exchange maintains that it already has more than 1,500 corporate clients in the region.

Will stablecoins in Argentina continue to grow?

In Argentina more than 31% of crypto transaction volume comes from stablecoin sales compared to 26% for Brazil and 18% for Mexico, according to Chainalysis. In 2022, the number of users who bought stablecoins in Bitso Argentina doubled.

“This increase in users buying digital dollars has to do with a combination of advantages: the security of being backed and audited; the possibility of accessing returns for holdings; the ease of being able to buy and sell without quantity restrictions, the 24 hours a day, 7 days a week, with immediate connection to the local banking system,” said Julian Colombo.

In Bitso there is a basket of currencies that we call USD stablecoins, made up of USDC, USDP and BUSD. In this way, the user does not buy a particular currency but a unit of this basket, which can be used interchangeably among the 3 currencies that make it up. Also, outside of this basket, DAI, USDT and TrueUSD are listed, all tied to the price of the dollar.