fbpx

Industry predictions for crypto in 2024

Crypto 2024 Image credit: Chinnapong / Shutterstock

Crypto has found itself in a complicated space at the end of 2023. Just a few years ago, the alternative currency technology experienced unprecedented levels of growth, both in the value of assets like Bitcoin and in public awareness.

Recent high-profile scandals, including the collapse of FTX, legal challenges against the CEO of Binance, and asset values far below the heights of 2021, have made people cautious of crypto. Looming regulation creates further uncertainty for the sector.

Does that mean it’s all over for crypto? A surge in the price of Bitcoin in the back half of the year, continued investments into crypto firms and heavy interest from governments and central banks suggests not.

These themes will continue over into next year. UKTN spoke to experts to get a sense of what might be coming up for crypto in 2024.

A pivotal year for regulatory clarity 

“It’s important that MPs from all parties and from all corners of the UK get to know the cryptoasset industry better, which will be one of our main goals for 2024. We want to work with more MPs and other political stakeholders to bridge this apparent knowledge gap.

“In addition, we would like 2024 to be another year of progress when it comes to providing a regulatory framework in the UK for the crypto industry. There have already been some important milestones reached in 2023, including a series of new rules coming into force and consultations from the FCA, Bank of England and The Treasury, but 2024 could be a pivotal year in securing this regularity clarity for the UK to truly become a global crypto hub.”

– CryptoUK spokesperson

Crypto will increase cybersecurity challenges

“The financial sector has always been prone to intense cyberattacks; this trend will continue its exponential growth due to the dependence on digital technologies in everyday operations.

“In 2024, with the continuous inclusion of underbanked and unbanked populations, the expansion of blockchain, crypto and similar technologies will grow, raising not just technological, but also human-related security challenges. An undereducated workforce and population will pose an exponentially growing security risk, and the trend of regulators shifting this responsibility towards the companies is predictable.”

– Csaba Virág, chief strategy officer, Nortal Cyber Resilience

CBDCs will be a turning point 

“The rise of Central Bank Digital Currencies (CBDCs) is set to be a defining trend in 2024. Several central banks around the world are actively exploring or developing their own digital currencies, aiming to modernise payment systems and enhance financial inclusion.

“CBDCs offer governments greater control over monetary policy and the ability to streamline financial transactions. Additionally, these digital currencies have the potential to reduce the reliance on cash and improve the efficiency of cross-border payments.

“As more central banks pilot and implement CBDCs, 2024 is expected to mark a crucial turning point in the evolution of digital currencies within the mainstream global financial system.”

– Nigel Green, CEO, deVere Group