2019 was a meaningful year for blockchain and cryptocurrencies. The past year has witnessed the rise of new cryptocurrency products, the capability of Bitcoin and Ethereum to survive bear market, and the continuous expansion of practical application areas of blockchain protocols. Many individuals have high hopes for the new year. Therefore, let’s take a look at the major events in digital market in 2020.
Multiple central banks to pilot cryptocurrencies
From International Monetary Fund (IMF) to central banks, institutions that have not launched cryptocurrencies will start to study and issue their currencies this year. According to a report from the Block Crypto, 18 central banks in the world publicly expressed that they would launch their own cryptocurrencies; some are actively developing, others are collaborating with third-party blockchain software suppliers to launch pilot programmes. Among them, the People’s Bank of China is the fastest growing and most influential central bank.
China to launch central bank cryptocurrency
China has been very active in blockchain and cryptocurrency industries in the past few years. Its paramount leader has recognised blockchain and its benefits, indicating that China must be at the leading edge of the blockchain industry. These will lead to large-scale investments and R&D resources.
Huang Qifan, vice chairman of China Centre for International Economic Exchanges (CCIEE) has stated in October 2019, that Digital Currency Electronic Payment (DCEP) forged by the People’s Bank of China is maturing, and that the China central bank is on course to become the first central bank in the world to launch a cryptocurrency. According to China’s specialised financial media, the bank will demonstrate the operation of legal cryptocurrency in some cities in the first half of 2020. As DCEP is going to be launched, its blockchain cross-border settlement system is likely to be built in no time.
Some features of Libra will be restricted
Facebook’s payment network plan came across setbacks due to the restrictions of regulatory authority. Nonetheless, Libra’s GitHub remains active with its code undergoing regular development and submission activities. According to Reuters, Libra Association’s board member Patrick Ellis stated that Libra will be launched this year and its scope of launch relies on negotiations with regulatory authority.
The highly anticipated Libra will be restricted in terms of applications and functions. Although the universal payment method and cryptocurrency tools with low barriers that were originally created cannot be achieved, Libra, with its 2 billion users, may bring disruptive changes to existing financial and monetary systems. In any case, only time will tell whether Libra can maintain a stable development after going online and whether monetary sovereignty of small countries can withstand the impact of Libra.
Ethereum 2.0 will continue to develop
2020 will determine the success or failure of Ethereum 2.0. The developers responsible for Ethereum 2.0 blockchain client components keep an eye on community feedback and are very active in terms of update and progress sharing. Such continuous improvement momentum will consolidate investors’ faith on Ethereum blockchain. According to its project roadmap, the expectations of some Ethereum-based products will be met this year.
All in all, 2020 will be a vital year for blockchain technology and digital asset ecosystem; many people could predict that blockchain-based cryptocurrencies will go mainstream this year. Through utilising above development trends, we also believe that this year’s major blockchain protocols and digital assets will continue to grow in terms of usage and indicators. If you want to be a part of the digital revolution, kindly register at AI Gain now.