World Economic Forum: 4 factors driving global cryptocurrency adoption

On September 7, the World Economic Forum recently released a report stating that four major factors have driven the global adoption of cryptocurrencies.

The first is that central bank policies, hyperinflation and macroeconomic instability lead to fluctuations and depreciation of fiat currencies relative to other global currencies.

Secondly, the remittance costs of traditional payment systems are too high, at 6.8% globally and nearly 9% in sub-Saharan Africa, which may be the reason for the increase in P2P cryptocurrency transfers.

The third is the invention and rapid expansion of stablecoins, which can serve as a frictionless medium of exchange between cryptocurrencies and fiat currencies. The fourth is the different applications provided by various digital assets, coupled with the industry's efforts to become more environmentally friendly and consume less energy, which has prompted people to turn to the crypto market.

In addition, the report also believes that cryptocurrencies will not facilitate illegal financial activities, but provide opportunities to create a more transparent economic system. Illegal activities are significantly less than the traditional financial system, accounting for only 0.34% of all cryptocurrency transactions. (World Economic Forum official website)