Cryptocurrencies have had a challenging few months, facing issues related to trust and recovery, exacerbated by the global economic recession, scandals, and tanking currencies. High-energy-sapping currencies such as Bitcoin have also been criticized. Additionally, cyberattacks and fraud incidences continue to rise in the digital currency space, leading to an urgent need for better security and regulations. Experts believe that restoring trust is critical to the recovery of cryptocurrencies and DeFi.

Tougher verification methods and identity security protocols must be embraced to increase customer confidence. Identity verification is predicted to play an even more critical role within the crypto sector. However, compliance with orders issued by the judiciary in cases of fraud remains a challenge. Despite the challenges, more pilot schemes have been launched for CBDCs globally, and caution needs to be exercised before their official rollout.

While CBDCs' applications are endless, they could be providing governments and banks with the ability to track transactions and provide real-time censorship to individuals who disagree with their viewpoint. The industry is carefully watching the CBDC roll out across various countries to assess whether they are acting as a force for good or providing tools for control.