Digital Asset Economy Outlook in 2022
Written by EmergentX Insights team
February 14, 2022 | 1 Min
Highlights
- 2022 will see the increasing convergence of the ‘crypto’ and ‘traditional’ economies.
- Participants will constantly push the envelope of innovation which will lead to new use
cases and drive mainstream adoption. - 2022 will see multiple stakeholders (policymakers, investors, executives and
participants) recalibrate their risk measurements as they factor digital assets into their
mandate.
Core thesis
Digital assets have demonstrated the disruptive potential to solve real-world financial issues
and democratize access to financial solutions to the unbanked population. Proven digital
asset use cases include banking, payments, wealth transfer and financing services at the
grassroots level.
Significance and Disruptive Impacts
The narrative around digital assets will broaden to encompass various demographics and
mainstream use cases, spanning entertainment, commerce, financial services etc.
Expectation for 2022
- Crypto and traditional economies converge
2022 will see the increasing convergence of ‘crypto’ and ‘traditional’ economies and
partnerships between traditional finance and crypto-native firms. There is a trend
towards a better working relationship between both ecosystems. - Breadth and depth of market reach will further pick up
2022 will see emerging markets further embrace digital assets for the benefits of
financial inclusion and empowerment. New digital asset use cases will democratize
access to financial services for unforeseen demographics, translating into an
exponential rise in digital asset adoption. - Reinforce necessity of digital asset exposure
Digital asset adoption will accelerate in 2022 to the extent that it is necessary to
participate in the asset class. Primary drivers include higher risk-adjusted returns,
lower correlations and inflation hedging benefits. - Recalibrating risk measurement
Digital assets will fundamentally change how decision-makers view risk and reward.
As digital assets get unfolded into the fabric of the economy, stakeholders –
including policy makers, executives, investors and the public – will measure risk
using a new methodology. - The ecosystem will strengthen as innovations address shortcomings
More resilient chains, new use cases and robust cybersecurity solutions will drive
mainstream adoption in 2022. - Digital asset innovations will continue to disrupt traditional business models
The strategies that TradFi institutions undertake range from competition to
coopetition.
Blockchain is a starting point for yet unknown use cases.
EmergentX Digital Asset 2022 Outlook
Year of Consilience
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