Over the last few years, crypto has seen its share of ups and downs. Pundits are everywhere when it comes to guessing the next all-time-high, or trying to pinpoint what level they think Ethereum, Bitcoin, or any other of a host of cryptocurrencies is going to be in the future. When it comes to the exact future of crypto prices, no one has a crystal ball.
However, what investors can focus on are real-world adoption and usage of crypto. Here’s a list of top events that can drive widespread adoption for crypto in 2021.
Central banks Are Racing To Create Digital Currencies
Nearly 80% of central banks around the world are engaging in research, experimentation, or development of CBDCs. Citigroup’s Chief Executive Michael Corbat said his company is going to help countries around the world create their own digital currencies. Corbat specifically stated that CBDCs are “inevitable” and will be the future of money.
The People’s Republic of China has made the most progress and is already testing its new currency, the digital Yuan, across several Chinese cities. It will be their first legal digital currency, and it is one of the most advanced and forward-thinking financial projects of all time as it introduces crypto to millions, and later, billions of people. It’s a bit different from what you’d expect with standard crypto because it is controlled, monitored, and issued by the People’s Bank of China. To get the ball rolling, the bank is giving $29.75 worth of digital yuan to 50,000 randomly chosen residents so China can test the network and study how consumers utilize the new currency.
Recently, Chinese eCommerce company JD.com announced it will be the first company to accept digital yuan as a form of payment. The new cryptocurrency is picking up steam with support from companies. As more people become familiar with cryptocurrencies like digital yuan, other cryptocurrencies like Bitcoin may become more understood, and purchased and increase in price as well. Not only that, but other countries have been noticing China’s CBDC and may copy them.
Big Banks Embrace Crypto
Big bank adoption of crypto is also accelerating. Last month, German private bank Hauck & Aufhäuser announced their very first cryptocurrency fund. The HAIC Digital Asset Fund I is a joint effort with Kapilendo and will aim at being attractive to investors interested in investing in cryptocurrencies like Bitcoin, Ethereum, and Stellar. This fund will cover 85% of cryptocurrencies and will passively allocate cryptocurrencies based on factors like market capitalization. This is a strong sign that as time goes on, private banks and other entities will create new ways for people to invest in cryptocurrencies.
Germany’s bank is not the only bank around the world getting involved in crypto. Singapore’s largest bank, DBS, Spain’s second-largest bank, BBVA are also getting into crypto as well. DBS is creating three new crypto offerings, including trading and…