Posted 2 years ago | by Ben Armstrong
FIVE Big Ideas that Will Change Crypto and Blockchain in 2020
Crypto and blockchain are starting to have a big impact on the established financial system. There are a few big ideas that will be hot this year, and we put together a few of them that should be in the news as 2020 unfolds!
ONE – Nations Will Launch Digital Currencies.
Several countries considered building their digital currencies during 2019. 2020 may be the year when they hit the market. Nations like the UAE, Japan, Sweden, Russia, Estonia, and France have stated plans for their own regulated state-issued digital currencies.
Although France wanted to start laying the foundations for a national digital currency by the end of the first quarter of 2020, it seems China might beat them. China is on track to demo a national digital currency in the coming weeks, which would give them the record (if you don't count Venezuela's Petro).
Pradeep Goel, CEO of blockchain-based health care platform Solve.Care, thinks state-backed tokens will create a range of efficiency gains.
“Although governments around the world remain centralized, there is still an opportunity to incorporate decentralization into certain aspects,” he said. “In 2020, we will certainly see further government integration of blockchain technology in order to process large quantities of data between agencies, services, and administrative bodies.”
TWO – Corporations Will Jump in the Crypto Pool
J.P. Morgan Chase, Walmart, AirAsia, Mitsubishi, and Tencent are all in the process of creating digital assets. French finance giant Société Générale has being built a security token for its bond business.
Most notable among them is komgo SA, a consortium of companies including ABN AMRO, BNP Paribas, Citi, Crédit Agricole Group, ING, Rabobank and Shell that are building a blockchain-based on Ethereum.
There are also other projects that seek to use blockchain as a means of settling FOREX transactions in the interbank market, and also in trade finance. These are some of the biggest markets on earth. Clearly, blockchain is catching on in a big way.
THREE – The Bitcoin Halving
The next Bitcoin ‘halving’ is forecast to be in May of this year when bitcoin block 630,001is finally reached, and the mining reward will drop from 12.5BTC (roughly $90,000) to 6.25BTC (roughly $45,000).
Following that fewer bitcoin will be produced, which lowers the overall rate of inflation across the network. The inflation rate will drop from four percent to two percent, putting it on parity with some of the world’s most prominent fiat currencies (at least if you believe official central bank stats).
FOUR – Age of DeFi
Decentralized Finance is taking the decentralization that cryptos created and applying to more complex systems. Financial activities like loaning money and creating synthetic bonds can be done with cryptos, and some DeFi platforms have become popular in the span of just a year or two. Keep an eye on the DeFi space in 2020, and beyond.
FIVE – Blockchain will compete at the Olympic Games.
Mitsubishi Estate, which manages nearly a third of all the buildings in Tokyo's business district, has co-operated with electronics giant Fujitsu to provide blockchain-secure data sharing between restaurants, hotels and other companies during the month-long summer Olympics. Future host Paris has also planned to use blockchain in their Olympics in 2024.