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2020 Will Be The Year Cryptocurrencies Come of Age – Says Luno

2020 Will Be The Year Cryptocurrencies Come of Age – Says Luno

Press Release 2020 Will Be The Year Cryptocurrencies Come ofAge says Luno-techcryption

Kuala Lumpur, 12th December : Luno, a leading cryptocurrency firm that received its approval from the Malaysian Securities Commission in October says 2020 will be a very exciting year for altcoins.

The theme for 2019 was a move from dramatic speculation led volatility to a relatively more stable environment with traders using altcoins to diversify their investments, providing potentially higher returns as markets moved to risk-off positions.

This was in part brought about by the take-up of coins by a greater number of institutional investors, which balanced out short-term speculators with longer term strategies. According to Luno, the three main predictions for 2020 are as below:

Regulation

Many countries in the world have started to have a positive view on cryptocurrency and talking about accepting cryptocurrency since the presence of Facebook’s cryptocurrency Libra and it is expected to continue in 2020 too.

By far, the G7 group of nations outlined the need for stablecoin regulation, implying that guidelines or laws may be produced next year, and Japan also passed a bill in May that will reinforce its existing cryptocurrency laws, coming into force in April of next year.

“One major regulatory development coming next year is the introduction of the 5th Anti-Money Laundering Directive. For firms buying and selling crypto-assets, the 5th Anti-Money Laundering Directive (5AMLD) will require them to register with national financial regulators. It also states minimum requirements for AML processes, similar to those we see with traditional asset classes.”

Adoption

Throughout 2019 there have been rapid changes with new start-ups such as Flexa introducing slick crypto-payments platforms for retailers. More importantly, there was a diverse array of retailers both big and small, willing to integrate their services. Among them were Whole Foods Market, Office Depot and Nordstrom, to name a few.

This growth should continue into 2020, potentially inspiring similar projects and competitors to offer a similar product. It also provides more options to institutional investors and traders. It is notable that Starbucks, for one, has announced that they’ll be integrating Bakkt’s crypto-payment service in the first half of 2020.

Transition

With Libra planning to sign up to 80 more members to the project, its potential impact is tremendous. It’s really a question of ‘when’ rather than ‘if’ and it is a game changer for the sector.

Since there will also be a halving, which is a recurring event in which the number of Bitcoin rewarded to miners are cut by half, it will see the block rewards fall from 12.5 to 6.25 Bitcoin. Experts believe that this increases demand for the cryptocurrency by further restricting supply.

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However, the cryptocurrency space has matured since then, with the traditional financial industry and some of the world’s biggest technology companies taking an interest in Bitcoin. That makes this halving more unpredictable than ever, with no guarantee that there will be another bull run as in 2017.

There are rumours that in 2020 could see China make a big move in the space with the introduction of its own digital currency. It was China that really dominated the headlines though, as the government appeared to warm up to the idea of blockchain technology – if not strictly speaking cryptocurrency itself.

First, President Xi noted in a speech that “We must take blockchain as an important breakthrough for independent innovation of core technologies.” Chinese censors then began to remove online posts claiming that blockchain technology is a scam, while at allowing promotional posts. With rumours circulating that the country will launch its own coin.

India, another country initially directly opposed to crypto also appears to be changing its position in November, Sanjay Dhotre, Minister of State For Electronics And Information Technology in the government of India, claimed that a “National Level Blockchain Framework is being prepared” considering the technology’s potential and different use cases.

“Finally, we will see the launch of the long-awaited Ethereum 2.0, codenamed Berlin, we could see the death of ICOs and many people will sit on the fence over privacy coins. We started 2019 with Bitcoin at US$3,843 with a daily volume of US$4.3 billion and at the end of this year we are around US$7,200 with a volume of US$17 billion, having peaked at US$13,016.23 on the 25th June with US$45billion if BTC being traded.”

2020 will be a very important and exciting year for cryptocurrencies and Luno will be leading the way for its customers.

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