PwC Henri Arslanian’s 10 predictions for 2022


2021 is a historic year for cryptocurrency, with many milestones. And there is no sign that the momentum will slow down in 2022!

Based on our tradition since 2015, here are my 10 crypto predictions for the coming year:

Fortune 500 companies in the meta world

Saw it in 2021 Metaverse Rush into the mainstream. Although many Metaverse games and ecosystems have existed for many years, from Second Life to Roblox, Facebook Renamed In late October 2021 to Meta to bring this to the forefront. This draws attention to the ever-growing Yuanjie ecosystem. Decentraland and The Sandbox are good examples, they have all seen Huge growthThis situation is expected to continue in 2022, and every Fortune 500 company is trying to figure out its own meta-festival strategy.

Twenty years ago, every business had to suddenly come up with their e-commerce or online strategy. Now, every Fortune 500 company needs to consider their Meta Festival strategy. Looking forward to consulting companies (Like ours) To solve this problem.

2021 is the year when the wider world “discovers” the meta universe. 2022 will be the year when it may become mainstream.

Private banks have cryptocurrency FOMO

Last year we Expected 2021 will see many private banks enter the crypto space. They did it. Witnessed many private banks in 2021, from Morgan Stanley arrive JPMorgan Launched Bitcoin and crypto products for its customers.

This type of product is right Require Used to access digital assets from many family offices and high-net-worth individuals. In addition, in an environment where fee compression has become the norm, these products still provide private banks with high fees and high profits.

However, although owning such products is now seen as a competitive advantage for these private banks, we may soon enter an era where the absence of any encryption products would be an obvious disadvantage.

Many large private banks believe that Bitcoin is not an important asset (not selling crypto-related products may not help!). But we should expect that most people will do it 180 times and launch encryption products in 2022.

read more: Pantera’s Paul Veradittakit’s forecast for 2022

El Salvador inspires others?

In 2021, El Salvador becomes the world’s first Know Bitcoin As legal tender. Positive effects have been recorded: according to The President of El Salvador, Nayib Bukele (Nayib Bukele) said that there are now more people with Bitcoin wallets than with bank accounts, which makes 70% of the population The person receiving the remittance can do so without excessive remittance fees, which can balloon Up to 12.5%.

Not surprisingly, both sides International Monetary Fund and World Bank, Both organizations were created in Bretton Woods Conference of 1944 Countries with the US dollar as the global reserve currency have been very opposed to such a move and have publicly warned El Salvador to reverse the situation.

Many politicians or policymakers in other smaller countries, especially those Dollarization Or de facto dollarization Panama, Or those in developing countries, such as Paraguay, Can follow in the footsteps of El Salvador.

Others may not want Bitcoin, but may be interested in other forms of digital currency.For example, Palau Announce It is considering launching a government-backed stablecoin, and Marshall Islands It is already considering launching its own digital currency. And this often goes beyond emerging markets.For example, recently Polls It was found that 27% of U.S. residents support making Bitcoin a legal tender.

It is expected that many other jurisdictions will closely monitor developments in El Salvador. They may not necessarily follow in their footsteps and recognize Bitcoin as legal tender in 2022, but it is expected that this topic will be very actively discussed.

Ethereum’s success or failure

Ethereum is the smart contract and layer 1 platform with the largest market value.However, 2021 shows its legacy issues, from Scalability struggle arrive High cost, and Average transaction fee It ranges from about US$4 all the way to US$70.

There is a lot of optimism around Ethereum 2.0, Plus recent changes, such as EIP-1559, Promoted price The price of ETH has risen from US$750 this year to US$4,800.Although Ethereum was the only serious show in town during the last major bull market of 2017, there are now many level one Alternatives, from Algorand and avalanche arrive Solana and Tezos, Which not only provides better scalability, but also significantly reduces costs.

The crypto community is very patient and has a lot of affection for Ethereum. However, unless the ETH 2.0 upgrade proceeds as planned, the network may lose many users, and they may eventually determine that the grass on some other chains may be greener.

Gamers push for Web 3

Network 1.0 It is a static Internet, represented by companies such as AOL and Netscape. Network 2.0 It is a fascinating Internet, but it is controlled by large technology companies such as Meta and Google. Network 3.0 It is a decentralized and permissionless Internet, but it is also an Internet where users can control their data.

NFTs, DeFi and mEtawi Is leading us to the Web 3.0 ecosystem. The catalyst here may be the gaming industry.

Had 2.5 billion players Globally, in recent years, the frustration of exercising excessive control over some large game companies has grown, from the inability of these players to own their game assets to the lack of interoperability with other games.

2021 showed us Go to financial institution and NFT In the game, in addition to the power of decentralization Make money while playing Model like Axis infinity And its Over 2 million active players per month. With the emergence of a large amount of funds dedicated to this area, Solana’s $150 million Web 3.0 gaming fund As a perfect example, look forward to the catalysis of this space.

NFT becomes mainstream, but lacks accounting, tax and legal clarity

In 2021, NFT is included spotlight,and Total sales More than 12 billion U.S. dollars.Several eye-catching, high-profile sales take the lead, from Beeple’s $69 million jpeg Millions of dollars in sales Cryptopunk and Boring Ape Yacht Club NFT.

The excitement surrounding NFT (and Sky-high valuation) May disappear, but the reality is that NFT will continue to exist. Expect them to become more mainstream and even invisible in their daily interactions.

We should see NFT appearing in everything from limited edition sneakers and high-end wallets to sports tickets and in-game collectibles, because this medium becomes the standard rather than the exception.

The big problem here now revolves around legal, taxi, and Accounting The considerations surrounding this type of NFT, namely Far From the clear. From a legal perspective, what are the considerations surrounding intellectual property rights or consumer rights? From an accounting perspective, does NFT represent intellectual property licensing rights or intangible assets? From a tax point of view, what are the considerations regarding income from issuing NFTs or ongoing royalties?

PwC Polls It is found that only 7% of tax authorities worldwide provide any form of tax guidance to NFTs. In 2022, this situation needs to change. Guidance is not only beneficial to taxation or regulatory agencies, but also to the public.

Everyone is paying attention to China and its electronic renminbi

2021 is a landmark year for CBDC.We have not only seen pioneering projects in the following areas Wholesale CBDC, from Hong Kong mCBDC Bridge Project arrive Singapore’s Dunbar Project, We have also seen countless Retail CBDC Molding, from ENaira in Nigeria arrive Bahamas dollar.

But all eyes will be on China in 2022, and it will be launched soon Electronic RMB. Domestically processed US$9.7 billion Conduct electronic renminbi transactions through various pilots.more than 140 million Chinese residents already have electronic renminbi wallets.

China’s latest cryptocurrency ban and the start of the Beijing Winter Olympics in February 2022 paved the way for the launch of an electronic renminbi early next year. This will be a historic moment in the history of currency.

Centralized crypto exchange DEX competition

As we are Expected Last year, DeFI continued to grow rapidly in 2021, Total value locked It has grown from just under 22 billion U.S. dollars at the end of 2020 to more than 250 billion U.S. dollars today.

DeFi is undoubtedly the most Exciting field In today’s financial field, new products of decentralized exchanges, asset management loans and even insurance products are improving every day.

Some features of DeFi, such as Composability, Give us a chance Reimagining financial services Using the first-principles approach, this is something we have not had the opportunity to do for decades.

This not only attracted Record level Assets, but the most important thing is talents. Many smart people focus on this field.

DeFi will not only affect traditional financial institutions, but also centralized exchanges, especially when DEX transactions become more user-friendly. Centralized platforms will continue to exist and play an important role, especially as legal entrances and new entrants, but they will need to increasingly coexist with DEX.

U.S. dominates Bitcoin mining and helps ESG

By July 2021, approximately 65% Part of the global Bitcoin mining takes place in China.The following banAlmost all of these activities have moved to countries that are more friendly to Bitcoin mining, such as the United States, Russia, Kazakhstan, and Canada.

America has become The largest Bitcoin miner Globally, its activity share has soared from 4% at the end of 2019 to more than 35% After the ban.With some Regulatory uncertainty In countries such as Kazakhstan, we should expect the share of mining activity in the United States to continue to grow in the coming months.

The main advantage here is that Bitcoin will become more environmentally friendly.about 57% Today’s global Bitcoin mining uses renewable energy sources, according to Bitcoin Mining Council, An industry group, this percentage is higher In the United States.Bitcoin mining may eventually accelerate The growth of this type of renewable energy has gone from being the last buyer to making renewable energy production more sustainable.It also helps to solve looming problems ESG debate.

Many people initially thought that China’s ban was a negative development. It may eventually become one of the biggest positive catalysts in our industry. Expect to see positive consequences in 2022.

Crypto M&A turns crypto unicorns into octopuses

As we are Expected Last year, 2021 was a record year for cryptocurrency mergers and acquisitions.According to some data source, In 2021, the value of cryptocurrency mergers and acquisitions exceeds 25 billion U.S. dollars.

We should expect this situation to continue in 2022, especially in Crypto unicorn By spending some bull market proceeds and acquiring or investing in companies that provide ancillary services for their current products, they are increasingly turning into a cryptocurrency octopus.

In particular, companies that provide access to retail communities, ecosystems, content, and/or data should be interesting acquisition targets for some of these encryption platforms. The same is true for companies subject to key market supervision to achieve access and faster market entry strategies.

We should also expect some larger financial services companies, especially those companies that started their cryptocurrency journey later, to look for potential acquisitions.

In 2022, the feast of crypto mergers and acquisitions is far from over!


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