2019 has seen crypto exchange BiKi.com traverse the globe to internationalize its brand. Countries such as Vietnam, South Korea, Japan, Russia, Uruguay, United Arab Emirates, Malta and other Western nations have been on the BiKi agenda for expansion or blockchain globalization plans. In its global tour, several questions on central bank digital currency (CBDC) has been raised.
The crypto exchange has thus been able to gain unique insights into the market conditions of each region. According to BiKi SEA CEO Ethan Ng, who leads the blockchain globalization initiatives, the rise of central bank digital currency (CBDC) will have a significant impact on the future financial ecosystem.
Citing Christine Lagarde who spoke about ECB’s (European Central Bank) stance on central bank digital currency (CBDC), Ng shares his insights on this growing trend in 2020.
China is seeking a two-tiered system which revolves around the relationship between central bank, banks and consumers. With BiKi’s research lab, incubator and fund still located in China, BiKi has been paying close attention to the latest news on China’s central bank digital currency (CBDC).
“China is not one to shy away from innovation,” said CEO Ethan Ng. “It has one of the fast-growing markets with an ecosystem of their own. Since the Chinese central bank digital currency (CBDC) will not be directly consumer-facing, it will marry well with Chinese cryptocurrency censorship for consumers, yet thrive on a larger B2B level.
“The outcome is a blockchain-driven tech country, with the average joe benefiting from the blockchain technology through reputable crypto exchange but steered away from investment risks and scam coins which are especially rampant in the Chinese industry.”
Launched over a year ago in 2018 by the Bank of Thailand, Project Inthanon is already in its third phase. CEO Ethan Ng managed to speak to key opinion leaders (KOLs) as well as regulatory officials and local Thai exchanges about the impending Thai central bank digital currency (CBDC).
“I noticed in Thailand that many KOLs were speaking about Project Inthanon,” said CEO Ethan Ng. “I believe Project Inthanon has one of the highest potential to be the first successful central bank digital currency (CBDC). Already, Thailand is so well-regulated, with crypto exchanges, projects and the crypto media all working closely with and being regulated by the government.”
The essence of blockchain, decentralization, might be lost but the upside is that governmental regulations can protect digital currency users. This, CEO Ethan Ng asserted, will “lower the barriers to entry for newcomers” to the technology.
The Turkey economy has not been thriving and the digital Lira is meant to alleviate its economic crisis amidst mounting debt. Many Turkish are also turning to cryptocurrencies due to the volatility of their own currency. Hence, the government plans to expedite the release of their central bank digital currency (CBDC), the Digital Lira, presumably by the end of 2020.
“They have real world use-case scenario plans for their CBDC. The citizens need it. And with their close ties to Dubai, it looks like these two middle eastern states will be headed for a full crypto region once these infrastructures are unveiled,” said CEO Ethan Ng.
CBDC Impact On BTC
“If Central Bank Digital Currencies (CBDC) are rolled out by 2020 in countries such as China, the European Union, etc, we can expect that bitcoin prices will go beyond the $20,000 price range,” declared CEO Ethan Ng. “This is likely because the roll out of CBDCs will increase adoption from mainstream players such as institutions, MNCs and SMEs in the market. These changes will have tangible impact on the everyday lives of the masses.”
Against such a landscape, there will be an increasing acceptance amongst non-crypto believers as they witness more and more familiar brand names adopting blockchain technology or developing their own stablecoins. Already, Walmart and IBM are examples of mainstream enterprises who have adopted blockchain technology while financial institutions like JP Morgan Chase and Signet are some of the big names in finance who have developed their own stablecoins.
As BTC is the leader in the blockchain tokens market, when its value increases, the altcoins will in general also follow suit. CEO Ethan Ng predicted that with the upsurge of mainstream attention, more discussion amongst regulatory bodies worldwide, the increasing utility of tokens especially in nations where local currency is volatile, a rise in demand for digital currency and cryptocurrency alike will ensue, sparking off a new wave.
The Race Is On
“In conclusion, it looks like there will be a race for countries to top one another in being the first to adopt blockchain and issue a fully functional central bank digital currency (CBDC), plugging in the gaps in their current national currencies,” said CEO Ethan Ng.
He observed that “ultimately, it will make the world much more connected financially, and more accountable to their assets.”