Davos 2020 saw surprising optimism and interest into blockchain technology.
The World Economic Forum hosted the forum in Davos, Switzerland, last week. The WEF announced that it is establishing a global consortium for governance of digital currencies, including stablecoins.
The WEF also hosted a variety of blockchain-related events at the CV Summit, which offered crypto enthusiasts to come together in one place. The Summit featured people from the founder of MakerDAO to Charles Hoskinson.
Here’s what Davos 2020 said about blockchain.
Increased optimism, better regulations
There seems to be increased interest and education around cryptocurrencies. While Davos 2019 was firmly ‘blockchain, not Bitcoin,’ Davos 2020 took interest in the potential of crypto, especially under regulations.
In fact, the WEF released a framework to help central banks create their own state-backed cryptocurrencies (CBDCs). The toolkit has been devised in collaboration with various organisations and individuals and is already being used by the Bank of Thailand and the Central Bank of Bahrain, as well as the National Bank of Cambodia.
A combination of 40 central banks and organisations, and the WEF, plan to use this framework to help banks evaluate, design and potentially deploy CBDC.
The WEF Global Digital Currency Consortium
At Davos 2020, the WEF also unveiled their Global Consortium for Digital Currency Governance. The Consortium will focus on the development of an interoperable, transparent and inclusive approach to regulation of digital currency.
It’s not hard to see the demand for such a consortium. From the controversy of Bitcoin to Facebook’s ultimate failure to deploy Libra, there’s an easily visible requirement for better standards and regulations in the cryptocurrency sector.
The Consortium will not only aim to support governance in crypto, but also foster a multi-stakeholder approach that incorporates both the public and private sectors.
Because of the potential of cryptocurrencies in financial inclusion, this will be a focus of the World Economic Forum’s Consortium. It will aim to bring together ‘leading companies, financial institutions, government representatives, technical experts, academics, international organizations NGOs and members of the Forum’s communities’ globally.
This year, the general attitude of Davos seems to recognise the potential of both blockchain technology and cryptocurrency, but taking into account a more regulated approach. To find out how Blockhead is using blockchain for better governance, click here. You can contact us for more information or a demo here.