Fintech is a dynamic world developing with insane speed and providing us with hundreds of promising ideas and projects. For many in the fintech industry, 2022 has been a year of tightening belts, adjusting priorities, and changing operating models. But there've also been success stories too with plenty of memorable moments. While numerous events are happening in the fintech industry, FBS collected the most interesting ones to share with you.

Go away, cash!
The shift to a cashless monetary system started in the EU. Sweden, Norway, Finland, and the Netherlands have increased debt/credit card users. More to say, Sweden expects to get rid of cash entirely by 2024. For now, there are only 32 ATMs per 100 000 people. While it's very convenient for the end user to live without paper money and worry that you don't have a change with you, the other side of the coin is way darker.

China, the second-biggest economy, is about to start using a digital currency that is easy to track, control, block, and transfer. Central Banks Digital Currency (CBDC) is a form of money made by using blockchain technology. In other words, the Chinese government will control every yuan citizens have. When the shift is completed, China will have enough power to tax you at any moment, ban your funds if you are not welcome, or have done something the government dislikes. Moreover, the Chinese central bank shared a plan to stimulate the economy by adding an expiration date to the yuan. Thus, people will have to spend the money, or they will disappear.

In February 2022, at the winter Olympic games in China, the country has been testing its CBDC for two years. When the Olympic games began, over $315 000 in digital yuan was used daily in China. It was the most successful experiment with CBDC so far, moving the country closer to a cashless future. While there remains a heavily cash-dependent demographic within China, the country is expected to attempt to go entirely cashless within the next two to three years.


Although the yuan's role in global forex exchange reserves is relatively low, its popularity is snowballing due to geopolitical tensions between US and China. FBS expects the yuan to become widely accepted globally over the next few years. Nigerian e-naira, launched in 2022, is also worth mentioning. However, it's not very popular because of high inflation.


Blockchains are everywhere! And that's great!

Blockchain is a technology for writing down information in which the data is repeated on a series of nodes, and the information on every node is the same. Blockchain is a great technology developing insanely fast, mainly due to high returns because of cryptocurrency growth. Every CBDC is a cryptocurrency, and every crypto works via blockchain. As a result, the blockchain market is growing with an immense speed, outpacing most markets.

The banking sector has been one of the quickest to invest in blockchain, with around 30 percent of the technology's market value concentrated in this field. This is due to the convenience of blockchain for financial transactions. Blockchain technology allows banks to transfer funds safely, easily, and extremely fast, making it a perfect choice for all financial operations. 

Forecasts suggest that global blockchain technology revenues will experience massive growth in the coming years, with the market expected to climb to over 39 billion US dollars by 2025. The figure below represents the current growth pace for the blockchain market and gives estimations of future numbers.




Blockchain is so impressive that some countries make Bitcoin, the leading blockchain representative, its primary currency. On November 29, 2022,  Brazil approved a bill that regulates the use of Bitcoin as a payment method. New rules "recognize bitcoin as a digital representation of value that can be used as a means of payment and as an investment asset." What is more, El Salvador gave Bitcoin legal tender status on June 8, 2021. Countries like Brazil and Salvador are shifting to other forms of payment because Bitcoin almost lacks inflation, which cannot be said about national currencies.
FBS expects the trend to continue and the blockchain industry to rise drastically in 2023. If you want to invest in Blockchain technology, you can Buy Bitcoin with FBS or invest in other companies that benefit from Bitcoin growth. For example, Nvidia and AMD produce GPUs whose price skyrocket when crypto is in a bullish rally. Therefore, when the recession is over (or at least the economy stops shrinking fast), we can expect a rise in shares of Nvidia and AMD.


Conclusion
As countries are switching to CBDCs and blockchain, regulators are working hard to protect investors' funds. Or, as some say, banks and regulators just want to control everything that can work as money. Still, more regulation means the industry is developing and evolving, which is excellent for all participating in the process. 
The fintech industry is vast, and we've covered only a tiny part. However, we are sure this article was fun and valuable for you. Check our analytical articles section to find more predictions and trade ideas. Or go to the Tips for Traders section and learn how to be a better trader.