Davos Concludes With Launch Of Global Crypto Consortium

Davos Concludes With Launch Of Global Crypto Consortium

about 4 years ago2 mins

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Last week’s World Economic Forum (WEF) wasn’t all prophets of doom: the days at Davos also saw a slew of potentially positive developments in the world of cryptocurrency 🤖

What does this mean?

Discussion among the 2,800 delegates at this year’s WEF was largely focused on the climate crisis. But there were also a few notable comments about cryptocurrencies.

Particularly prominent was the heavy hint from the CEO of Ripple (the $10 billion company behind XRP, the third-biggest cryptocurrency) that his firm may seek a US initial public offering in 2020.

Ripple controls most of the world's XRP – as well as the payments networks using it
Ripple controls most of the world's XRP – as well as the payments networks using it

But in a week where telecoms giant Vodafone ditched Facebook’s Libra, evidence of deepening government interest in crypto was also significant. Japan said on Friday that it would explore issuing its own digital currency – following news that the Bank of Japan was partnering with British, European and other contemporaries to share crypto knowledge.

With 20% of central banks now expecting to develop digital currencies in the next six years, it’s no surprise that the WEF closed with the launch of a new consortium devoted to harmonizing global governance of digital currencies both private and public 😇

Why should I care?

What with so much focus on state-issued “cryptocurrencies”, you’d be forgiven for forgetting about the likes of bitcoin. And with some concerned about the impact of the Chinese coronavirus outbreak on crypto prices – especially given some 66% of global bitcoin mining activity emanates from China – investors appeared to do just that last week.

Bitcoin’s price so far this year: it dipped last week before rising on Monday (Source: Insider)
Bitcoin’s price so far this year: it dipped last week before rising on Monday (Source: Insider)

Some still believe in the old gods. Payments processor Square remains convinced bitcoin and pals have a part to play in the future of money: it just patented a new type of network that allows people to make and receive payments in the currency of their choice.

For those who believe current developments will see “traditional” cryptocurrencies squeezed out, meanwhile, WEF week also brought a new way to put their money where their mouths are: an easily traded investment allowing anyone to short bitcoin... 🙃

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