EY’s Paul Brody is posting bullish signals for crypto despite the market’s carnage

Considering that significant value has been lost in the cryptocurrency market in recent months, with over a trillion actually wiped out, spectators are looking for a catalyst for the next step up.

Talking with CNBC International TV Paul Brody’s global blockchain leader at Ernst & Young (EY) shared his views on the “crypto winter” and the need for regulation in space, as well as what the bullish signals are for the market to move higher back.

According to Brody, it is possible that the market is nearing a bottom, but reminded everyone that the demand for cryptocurrencies, digital assets and blockchain assets is ultimately driven by a utility issue:

“The recent major declines in the crypto area have been somewhere in the range of 75% to 90%, so we are probably somewhere near a typical bottom. the latter is driven by use cases. ”

He added that crypto-adoption among companies is the catalyst for the upside:

“I think in the short term you can pump up demand with internet memes and good press, but in the long run it’s driven by what it is we can actually do with this technology. For me, the bullish signals are improving business use, increases business distribution, solves some of these structural problems in the industry such as better regulation, and there are a bunch of positive signals. “

Utility cases and business distribution

In terms of structural improvements for industry, Brody, Japan’s new regulatory framework, is truly robust, sending a signal that a growing number of countries will explicitly regulate stable currencies, which are of enormous and systemic importance. for decentralized finance.

Second, the acceleration of tracking technology for environment, social and business management (ESG), which means that an increasing number of use cases will be ESG, such as carbon tracking and supply chain management; This is the kind of thing that will drive the demand for cryptocurrency assets and blockchain technology for at least the next decade.

These examples all go forward, and in this connection it feels “still very reminiscent of 2001, exactly where asset prices may have crashed, but the value proposition and adoption continued.”

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