5 Money Themes to Watch in 2022

Ethereum 2.0, D.C. debates, environmental challenges, Web 3

Exploring the transformation of value in the digital age By Michael J. Casey, Chief Content Officer Dec. 31, 2021 If you were forwarded this newsletter and would like to receive it, sign up here. Sponsored by     Happy New Year! Last week's holiday edition of Money Reimagined offered a look back at the year that was and explored five ways in which our idea of money was challenged during those insanely busy, news-packed 12 months. This week, we explore the year ahead and consider ways in which money could potentially be further reimagined in 2022.    Meanwhile, the "Money Reimagined" podcast is following holiday formatting. This week, we highlight my co-host Sheila Warren's favorite episode from 2021. It's the one in which we discussed Haiti's perennial financial woes, how they are rooted in more than 150 years of slavery-era colonial debt, and what all that says about power, dependency and the burdens that the incumbent banking system impose on the poor. In it, we talked with Jerry Tardieu, a Haitian author, entrepreneur and politician; and Daniele Jean-Pierre, the co-founder and chief operating officer of Zimbali networks, about whether cryptocurrencies and blockchain solutions offer a way out.   Have a listen after reading the newsletter. A message from Circle  Introducing Circle Yield, a new way for institutions to get crypto returns without the volatility. It's a breakthrough investment built on USD Coin (USDC) and fully secured with bitcoin collateral. Offering fixed rates* across a full yield curve and returns that are superior to holding cash. Move your money forward with Circle Yield.   *Rates are purely indicative and are subject to change pending availability, approval and market conditions.   Additional terms apply. Learn more.  Reimagining Money in 2022 Artturi Jalli/Unsplash Who will issue our money in the digital future? Will governments, armed with central bank digital currencies, continue to monopolize monetary systems? Will private company currencies rule, either with stablecoins that track the value of pre-existing government units (e.g., tether), or with their own free-floating tokens? Or will decentralized currencies such as bitcoin end up as dominant? Or will they all compete against each other in a multi-currency future?    Of course, these questions will not be anywhere near resolved next year. But the debate is likely to intensify, driven by various factors. China is rolling out its Digital Currency Electronic Payments (DCEP) project during the Winter Olympics in February. The U.S. is developing regulations (see the next theme) targeted at private issuers of stablecoins. And adoption of decentralized cryptocurrencies for payments continues to grow around the world, helped by the advance of scaling systems such as Bitcoin's Lightning Network.   The policy discussion will intensify. As we mentioned in last week's newsletter, 2021 was a big year for crypto regulatory developments. Highlights include the U.S. Senate debate over crypto tax provisions in the infrastructure bill and the approval of a futures-based bitcoin exchange-traded fund (ETF.) It seems likely the regulatory push will get even more intense in 2022.    What's up for grabs? Well, there's a decent chance the U.S. Securities and Exchange Commission will find ways to clarify its position on whether tokens are unregistered securities, with developers of tokens for decentralized finance (DeFi) possibly finding themselves in the crosshairs. There will likely be an intensified push from newly emboldened crypto supporters in Congress for a more comprehensive overhaul of securities and other legislation pertaining to crypto, though we're unlikely to see anything as sweeping as the landmark 1996 Telecommunications Act, which some cite as a model for a clarity-setting legislative initiative around a new, transformative technology. Read the full column here.  A message from Amber Everyone wants to build wealth with simplicity and security. But how?   WhaleFin is a digital investing experience offering easy portfolio management tools, attractive investment yields, and access to the emerging digital lifestyle. With over $1T in volume traded, WhaleFin offers personalized, compliant, and secure service across dozens of digital assets in 150+ countries. And every investment on WhaleFin helps protect aquatic habitats and reduce atmospheric carbon by supporting WDC and Moss Earth.   Find out more Relevant Reads Predicting 2022 CoinDesk has a feast of predictions for 2022. Here's a sampling: 21 Predictions for Crypto and Beyond in 2022: CoinDesk's chief columnist David Z. Morris on the future of NFTs, Layer 1 battles, Fed policy, inflation, meme coins and much more.    10 2022 Predictions From PwC's Henri Arslanian: The consultancy's crypto leader on El Salvador's bitcoin embrace, the metaverse, gaming as a Web 3 catalyst, and Ethereum's competitive future. Katherine Wu on What Gets Built Next in Crypto: The Coinbase Ventures investor joins NLW's podcast to discuss the year-ahead.  Money Reimagined A newsletter from CoinDesk Were you forwarded this newsletter? Sign up here. 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