CRYPTOCURRENCY
GE :
M THE
TER
As governments speed towards CBDC pilot programmes , cryptocurrencies are facing tough recovery and trust issues . But is a thaw on the way ?
WRITTEN BY : JOANNA ENGLAND
It ’ s been a disastrous few months for the cryptocurrency market . The long winter of discontent has been extended by the global economic recession , tanking currencies , and scandals — think FTX .
High-energy-sapping currencies such as Bitcoin have also suffered from criticism , while progressive Ethereum has set the bar high by moving from proof-of-work to proof-of-stake , thus reducing its carbon footprint to almost nothing from its previous usage – which equalled the energy consumption of Finland .
Regulation is also looming large , as governments and financial conduct authorities set out new parameters for the decentralised finance space – and this is being shaped by the need for greater security as cyberattacks and fraud incidences continue to rise in the digital currency space .
Exchanges look set to embrace new regulations Experts agree that trust must be restored so that investors have confidence in cryptocurrency and DeFi . The journey towards better security begins with the world ’ s leading exchanges , which look set to lead the way by introducing tougher verification methods . fintechmagazine . com 97