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In its new report, Bank of America says that fears of a “crypto winter” have not frozen investor interest, and blockchain technology is the most significant software evolution since the Internet.
On Tuesday, Bank of America released a new report in which it noted that concerns about the so-called “crypto winter” have not stopped investor interest in this sector. The report, viewed by Coindesk, follows up from the bank's “Web3 & Digital Assets Day” conference, which took place last week.
The report says that conversations with some of the 160 clients attending the event clearly showed that “blockchain technology and the digital asset ecosystem are here to stay,” and the bank remains optimistic about the widespread adoption of digital assets. Some speakers at the event noted that the most innovative projects were built during previous market downturns and that the recent downturn, while painful, is “likely healthy for the ecosystem’s development over the long term.”
“Client engagement continues to grow and focus remains on the rapid development and disruptive nature of blockchain technology, despite falling token prices and headlines suggesting the ecosystem’s demise has arrived,” the report said.
The report notes that attendees who spoke at the conference stated that regulatory clarity is critical to institutional and corporate engagement, which could ultimately accelerate the actual use of cryptocurrencies and lead to mainstream adoption as consumer confidence in the sector grows. The general consensus is that institutional investors and corporations are preparing to enter the digital asset ecosystem but are staying on the sidelines until a comprehensive regulatory framework is in place.
BofA stated that digital asset products could attract the first billion users, but “the next billion will likely require improved bridges between the fiat and crypto ecosystems and the creation of a crypto-native ecosystem, in which individuals are unaware of the applications that leverage blockchain technology.”
Additionally, the bank reaffirmed its view that blockchain technology is enabling the most significant software evolution since the Internet, adding that the emerging Web3 application ecosystem has the potential to transform every industry.
© 2022, Eva Fox | Tesmanian. All rights reserved.
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About the Author
Eva Fox
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.
