S&P Global Ratings Study Predicts Crypto and Decentralized Finance Will Continue to Grow in 2022. – Bitcoin News

S&P Global, an intelligence and data company, suggests that crypto and decentralized finance trends will continue to gather steam in 2022. The company’s latest report examines current market conditions and points out that while some issues may hinder adoption, this sector is expected to continue growing in 2019 by adding traditional finance.

S&P Global Believes Crypto Will Continue to Grow in 2022

A new report prepared by S&P Global, an intelligence gathering and data company, predicts that the cryptocurrency and the decentralized finance sectors will keep growing in 2022. Global Credit Outlook 2022 states that although crypto institution investments remain concentrated in just a handful of companies, this may lead to others following their example. It states that:

Three companies–Block.one, MicroStrategy, and Tesla–hold almost 84% of corporate investments in bitcoin. However, institutional investors are showing increasing interest in cryptocurrencies and this has led to an acceleration of cryptocurrency investment.

Tokenization, according to the report could be used to encourage people to make investments in assets that they might not otherwise be able to. The tokenization of assets could allow for greater accessibility and democratization. Regulation will also be an important part of the next year, with the industry still needing “a regulatory framework that recognizes the rights of token holders and smart contract protocols.”

The Defi will not put traditional finance in jeopardy

The report says that decentralized finance will continue to grow, but it won’t threaten the existing structures of banking and finance. The report states that these institutions must adapt to the expectations of users today. According to the report:

In 2022, Defi will complement traditional finance, but not replace it. We expect it to continue developing in 2022 towards complementing existing finance systems rather than replacing financial service companies. We believe incumbents will need to continue investing in new technology in order to remain relevant.

The report states that regulation will have a major impact on the development (or stagnation!) of decentralized financial areas over the next year. S&P Global believes that the growth in volumes and the rise of stablecoins in the space will put pressure on the regulatory debate, but it is unlikely that regulators will jump to address these issues quickly because they often still lack the frameworks to fully monitor crypto assets, and this becomes a challenge in itself.

What do you think about the predictions of the S&P Global report? Leave a comment below.

Sergio Goschenko

Sergio, a Venezuela-based cryptocurrency journalist. Sergio is a cryptocurrency journalist based in Venezuela. He says he was late to the party, having entered the cryptosphere during the December 2017 price increase. His background is in computer engineering, but he also lives in Venezuela and was impacted at the social level by the crypto boom. He offers an alternative perspective on the success of cryptocurrency and the benefits it has for the underbanked.

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