The altcoin apocalypse and the looming shadow of national cryptocurrencies is likely to bring sweeping changes to the crypto market over the course of 2020. These new crypto trends will likely alter investor behavior and we should expect to see institutional investors treating the crypto industry more seriously than they have in the past.
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The rise of national cryptocurrencies
The most anticipated cryptocurrency today is China’s digital yuan. Given the nation’s leading position in the world economy, this could be a watershed moment that transforms the global financial system. The Chinese authorities are actively introducing many modern technologies, so we can expect that, at least inside the country, the Crypto Yuan will spread rapidly according to the party’s plans and could spark a new crypto trend.
2020 will probably see the rise of a number of national cryptocurrencies. Most likely, they will appear after the Crypto Yuan. The appearance of central bank backed cryptocurrency on the agenda of states was largely due to the recognition of the potential of cryptocurrency, especially in terms of stable coins. At the same time, organizations such as the International Monetary Fund, and the Bank for International Settlements (BIS), have repeatedly voiced that central banks should engage in developing their own analogs of cryptocurrencies.
Interestingly enough, there was also talk of a single cryptocurrency for individual regions, in particular BRICS countries (Brazil, Russia, India, China, and South Africa). China will most likely offer its national cryptocurrency for this role, which is consistent with the plans for its use in international calculations. Of course, of, this does not mean that the rest of the member states of the international group will agree to this option. The European Central…