Innovation without fear of falling foul of the law will be a welcome theme for cryptocurrency throughout 2022, if a leading fintech figure has predicted the year correctly.
Michael Kamerman, CEO of fintech platform Skilling, and a respected thought-leader in the crypto space, believes this is the year when there will be clearer and consistent legislation around crypto and its uses.
He’s also predicting a dramatic shift change in the pace of traditional finance integrating more with digital assets and blockchain technology.
“A challenge with cryptocurrency has been how, and to what extent, it should be regulated and, as a result, investors have been at increased risk when dealing with the volatile asset,” he explained, predicting improvements in regulation.
“This will enable better risk control for the customers and encourage crypto firms to innovate without fear of regulatory challenges.”
Financial leviathans Morgan Stanley and BlackRock were among the big traditional banking names leading the towards greater engagement with cryptocurrency. This, insists Kamerman, is likely to pick up pace over the coming months.
“Trading and finance are evolving before our eyes, and traditional finance can’t escape that trend,” he said.
“Particularly with younger traders, crypto is the word on everyone’s lips, including the customers of the traditional big players in finance.”
It’s not only traditional finance that has started to eye up crypto, but also blue-chip companies. Microsoft, PayPal and Starbucks have all started accepting payment in digital assets. This trend, the fintech expert suggests, will facilitate the ability for people to earn from some crypto holdings.
“There’s been a surge in people depositing (staking) Bitcoin, Ethereum and stablecoins on crypto savings accounts to generate a passive income,” he says.
“It’s likely that in 2022 the traction around ‘side-hustles’ will see more people making use of their idle digital assets to earn money.”
Looking ahead, Kamerman believes the next 11 months could conspire to deliver a landmark year for decentralised finance and cryptocurrencies, setting a springboard towards mass adoption.
“Traders understand crypto is a high-risk investment and will want to learn more about the market they’re entering. With sharper regulation, this will mean platforms can execute better risk management for their customers,” he added.
“The momentum will only grow throughout 2022. With more financial institutions taking an interest, 2022 will take crypto even further into the mainstream.”
The rise of blockchain gaming
The Skilling CEO also believes blockchain gaming is accelerating mainstream adoption of NFTs and levelling up the playing field for the industry in 2022.
“Play-to-earn games like Axie Infinity have shown there’s appetite. As more people become exposed to DeFi and NFTs, cryptocurrency will only grow in popularity and implementation,” he said.
“Gamers will be able to own in-game assets and trade them, and with the amount of investment going into gaming, blockchain gaming is set to dominate the year.”
Bitcoin will remain the benchmark
One thing that will remain unchanged during 2022, Kamerman stresses, is that Bitcoin will only solidify as the flagship cryptocurrency.
“When discussing cryptocurrencies, Bitcoin is generally the first one that comes to mind. Given its popularity, it has struggled to maintain momentum, especially against newer coins riding the wave of social media hype,” he says.
“However, Bitcoin has grown to be as popular as gold. It’s used as a safe hedging instrument and is one of the most stable cryptocurrencies.
“Bitcoin isn’t going anywhere, and the fact it is so established will maintain its popularity with traders, traditional finance institutions and blue-chip companies.”