The San Francisco-based financial company Ripple is optimistic that cryptocurrency and XRP use will increase in 2023.
On January 10, Ripple issued a blog post outlining its industry predictions for the next year. As the dust settles from last year’s contagions, it is predicted that this year’s crypto emphasis will be on real-world usefulness.
Ripple’s SVP of Engineering, Devraj Varadhan, anticipated a market-wide transformation. Things will transition from extremely speculative enterprises to those that use crypto technologies to tackle real-world issues.
“From Non-Fungible Tokens (NFTs) to Central Bank Digital Currencies (CBDCs) to sustainability, the majority of predictions for cryptocurrency in the next year concern its real-world usefulness,”
The emphasis on real-world applications will accelerate the new age of CBDCs, according to Europe Managing Director Sendi Young.
This year, more CBDC pilot initiatives are planned to be implemented worldwide. In addition, interoperable CBDC solutions that improve cross-border payments will be emphasized, according to James Wallis, vice president of Central Bank Engagements.
According to the company, the crypto utility will also extend to non-fungible tokens. While the original generation of NFTs focused on digital art and collectables, a second wave is already investigating real-world use cases including real estate and carbon markets.
Additionally, BeInCrypto claimed that the tokenization of real-world assets (RWA) would increase in 2023.
Young said that institutions will expedite their long-term adoption of crypto solutions owing to the potential efficiency, transparency, and speed improvements.
“Banks and other significant financial institutions will invest in new technologies with the intention of seeing the advantages not in days and weeks, but in years; thus, we anticipate that the adoption of digital assets and blockchain will continue far beyond 2023,”
In addition, Ripple’s vice president of impact, Ken Weber, projected that huge non-governmental organizations (NGOs) will begin adopting cryptocurrency in order to better help the financially disadvantaged.
He noted that carbon markets will certainly develop as another obvious use case for blockchain and cryptocurrencies.
The Ripple team came to the conclusion that the crypto winter of 2022 will be followed by a utility-focused crypto spring in 2023.