Cryptocurrencies are under the spotlight as never before
Cryptocurrencies are still in their early days and so are vulnerable to external shocks, which in turn are likely to impact the extent the adoption of what is still considered by most people to be a complicated technology. And when those adoption dynamics are linked to the price discovery process, the impact is all the greater.
The world is still coming to terms with the invasion by Russia of Ukraine, which in turn has prompted unprecedented economic sanctions against Moscow. Some analysts initially argued that Russia might try to use cryptocurrencies to bypass the sanctions, only to question later the influence of such a tool in the context of a war. In fact, the founder of Binance, Changpeng Zhao (aka CZ), stated that the volume of cryptocurrency transactions, a parameter he knows very well, was still too small for Russia to consider using them to try to evade the West’s economic boycott, given that even if we were talking about countries with a comparatively high level of adoption, this would still represent barely 3% of the world’s population, and of these, less than 10% had deposited significant amounts of their savings in them.
The cryptocurrency ecosystem has rapidly evolved from being a free-for-all to the current moment when most transactions are based on very clear reporting rules, with companies applying Know…
