In 2022, global cryptocurrency adoption will jump from the current 5% to 20%. The main drivers will be the SocialFi and GameFi sectors. This forecast was given by Binance CEO Changpeng Zhao in an article for the Indian edition of Fortune.
The head of Binance noted that 2021 was marked by ‘rapid innovations’ in DeFi. He highlighted the aforementioned segments and NFTs.
Zhao also noted that DeFi still faces a number of challenges, especially in ‘creating complex financial instruments, ensuring liquidity and capital efficiency, and in risk management and security’. He expects them to be addressed as the space develops.
Regarding India, Zhao noted the importance of government support for blockchain and cryptocurrency innovation, regardless of asset classification.
According to a report by NASSCOM, the crypto-technology market in the country is expected to reach $241 million by 2030 and potentially create 877,000 jobs. The organization also forecasts that by 2030 there will be an increased inflow of funds from retail investors into digital assets to $15.6 billion from $6.6 billion currently.
“India will win, because the crypto industry can provide financing opportunities for entrepreneurs, alternative sources of income for individuals, and stronger support for local developers,” Zhao said.
He stressed that the country is ready ‘to become a leader in blockchain and cryptocurrency’.
“Beyond banking and financial services, DLT-technology could improve the efficiency of land transactions, supply chains, agriculture and corporate resilience,” Zhao added.
For a look at DeFi developments, the GameFi and NFT boom, and other 2021 crypto-industry takeaways, see ForkLog’s analytical report.
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