Cryptocurrencies have been a game-changer in the last few years, as more and more people are starting to see the potential that this electronic and almost virtual currency can have in a modern financial system. For some, crypto may still seem too vague or intimidating, but there are those traders, buyers, and investors who have already banked on the potential future crypto will have in the coming years. With new regulations around taxation for crypto taking shape, and some countries allowing it to become a legal tender – there are various ways cryptocurrency can play out in 2022.
Relaxed Integration Into National Economies
In June 2021, El Salvador was one of the first countries in the world to introduce Bitcoin (BTC) as a legal tender in the country after the government approved a presidential proposal. Many countries have since started looking to introduce crypto or digital currencies as legal trading tenders in their local economies. Although the idea might seem legitimate in theory, some countries are still too skeptical about the future regarding crypto as an official tender.
Travel by Crypto
Crypto is slowly filtering into every global industry, with travel and tourism being next. Earlier this year, Travala allowed customers to pay using digital currencies. This managed to give them a step above the rest, making it easier for customers to pay for their holidays using any type of digital coin.
Crypto Interest Accounts
Crypto wallets are now slowly becoming a thing of the past, with the introduction of Crypto Interest Accounts. These accounts allow traders to safely store their crypto, and allow it to grow interest over some time. With more than 10,000 active users, and holding more than $500 million in assets, Hodlnaut is a game-changer when it comes to earning interest on your crypto coins. Once users have deposited their bitcoin or alternative coins, interest is then driven by market effects, allowing users to receive weekly payouts. A digital bank, for the future of digital currency.
Carbon Taxation on Crypto
Climate change activists and governments pushing green-agendas have seen a rapid change in the taxation of certain goods and services that can have an impact on the environment. Throughout 2021 a lot of debates have surfaced regarding the sustainability of mining crypto. Some users and traders are stating that mining crypto doesn’t impact the environment in the short-term – but the rapid growth of the crypto world will see nations bringing about a sort of carbon tax on digital coins, which can harm trading value.
More Tax Regulations
New tax regulations may also impact crypto in the coming year, as some national banking systems have already raised concerns that the mass use of crypto on a national level can have a devastating impact on local economies if tax regulations aren’t properly implemented. Crypto tax has been a hot topic of conversation in 2021, and we will see more of it in the coming year.
More Global Players
In 2021, PayPal came onboard to allow the trading and storage of certain crypto coins on their platform. The soft launch that took place in the U.S. meant that traders and crypto holders can now have an additional free platform on which they can securely store their crypto. The global name, PayPal is largely available in nearly every country and more global players such as these will make it easier for companies and individuals to pay, and transact using crypto.
Effective Use of Blockchain Technology
Blockchain technology has become a leading tool for logistical experts and companies moving a large number of goods. The disruption in 2020 caused a spike in-home delivery services, and the movement of certain goods has since changed forever. Blockchain technology allows for more transparent processing, and the use of this technology can easily be integrated into systems from various parts of the world.
The impact and change crypto has brought into our world have shown that we are ready for a digital change when it comes to trading and dealing with a global digital currency. Now, we must look upon a new year to see how our way of regulating and using crypto not just as a digital trading asset, but more as a monetary tool will impact its value in 2022.