Davos Crypto Diary: The Crypto Ghost Haunting Europe
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Davos Crypto Diary: The Crypto Ghost Haunting Europe
Crypto is no longer an outsider.
Navigating Web3 tides with focused insightsBy John, Special Correspondent for TechFlow, reporting from Davos, Switzerland
Note: On May 23, 2022, the World Economic Forum was held in Davos, a mountain resort in Switzerland—commonly known as the "Davos Forum." The event brought together 2,500 global elites from politics and business, including rising stars from the crypto world such as Circle, FTX, Ripple, Polkadot... The presence of crypto loomed large over Davos. This article is a personal reflection by John, special correspondent for TechFlow, attending the Davos Forum.
A “ghost” is roaming across the European continent.
As the bus entered the core area of the Davos Forum, a massive Circle Financial advertisement came into view. If you follow Circle founder Jeremy Allaire on Twitter, you’d know they’ve gone all out to place billboards in the most prominent spots: Zurich Airport, the first stop along the bus route into Davos, and directly across from Davos’ main train station—ensuring every visitor to Davos, whether from traditional institutions or the crypto frontier, can’t miss crypto’s high-stakes visibility campaign.
Has crypto’s status at Davos changed significantly?
Veterans who have attended the forum for years aren’t too surprised. One told me that since 2018, slogans promoting Bitcoin and Ethereum have already appeared on Davos streets. But this year marks a big shift: the expensive billboards and storefronts are no longer dominated solely by Bitcoin and Ethereum, but increasingly by crypto companies themselves.
A walk down Promenade Street reveals CNBC’s venue painted entirely with Filecoin’s logo, the Crypto Pub where you can casually drop in for a drink, Casper Labs’ Blockchain Hub—where people constantly gather with wine glasses in hand chatting—and corporate pavilions from Circle and Polkadot. On Polkadot’s flashy pink wall, bold letters declare: “WEB 3 IS HERE.”
Crypto-related news also emerged throughout the event.
Lockheed Martin announced a partnership with the Filecoin Foundation to build an open-source, highly decentralized blockchain node network in space. The two parties plan to identify a satellite or other aerospace platform capable of running InterPlanetary File System (IPFS) nodes, with a test mission expected to be confirmed by August 2022.
Richard Nash, Vice President of PayPal, said PayPal is doing its utmost to integrate all possible blockchains and cryptocurrencies onto its platform.
One focal figure onsite was Miami Mayor Francis Suarez, who previously started receiving his salary in Bitcoin and launched the well-known MiamiCoin.
However, as the bear market hit, Bitcoin dropped more than 30% over the past two months, and MiamiCoin plummeted 90% on May 12 alone.
At the event, Suarez stated he continues to receive his salary in Bitcoin and has no plans to stop—after all, it’s not his only source of income.
Moreover, Suarez is working with City Coin, the issuer, to address the severe devaluation of MiamiCoin. If unresolved, the City of Miami and City Coin may need to refund citizens who invested in MiamiCoin.
Compared to crypto, Web3 remains a rare term at Davos. Perhaps the traditional world, which is slowly coming to terms with discussing “crypto,” still isn’t ready to embrace the next conceptual buzzword.
Main agenda sessions involving crypto remain cautious: An afternoon panel on May 23 about digital currencies focused on cross-border remittances aiding economic recovery; two events on May 24—one a remote appearance by the mayor of Miami, the other examining Bitcoin mining’s carbon footprint. Of these three, only the last took place inside the main conference center—the first two were held at the media center.
Still, this marks notable progress. Coindesk published an article titled “At Davos, Crypto Is No Longer Kept Outside,” noting that even during a session on international macroeconomics, crypto managed to squeeze in: David Rubenstein, co-founder of the Carlyle Group, remarked, “Younger generations tell older ones that you’re letting the dollar and other fiat currencies depreciate, so maybe something new isn’t such a bad thing.”
I happened to attend that very panel, but the report only pulled out the more positive quote. The reality might not be so optimistic.
Christine Lagarde, Managing Director of the International Monetary Fund, said digital currencies are hitting a low point and called for stronger global regulation to prevent growing fissures in the payment system. The Governor of the French Central Bank labeled stablecoins without sufficient collateral as “pyramid schemes” (a financial term referring to investment projects where a small initial investment promises huge returns). What happens when such schemes collapse? They leave behind nothing but shattered pieces.
This reflects a strange and contradictory reality: while just outside the main venue, crypto enthusiasts toast each other, enthusiastically discussing the future (even amid the current bear market), ECB President Lagarde had fiercely criticized crypto just days before the forum, calling it valueless. Yet a few days later, she admitted on a TV show that her son invests in crypto: She has no right to interfere—only to watch closely.
Thus, cryptocurrencies have become an unavoidable reality, a generational dividing line. But full acceptance remains a long way off—echoing the popular crypto meme: We Are Still Early!
Overall, the World Economic Forum (WEF) in Davos remains the stronghold of Old Money. Yet crypto newcomers are becoming increasingly assertive, reaching out, seeking recognition. This is not just an emerging economic force—it may one day evolve into a powerful political force.
In my view, crypto remains an unstoppable deconstructive force. Just as ECB President Lagarde cannot stop her son from investing in crypto, what will happen to the world order when Generation Z—the native crypto generation—takes power?
It’s both exciting—and worth watching carefully!
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