Grayscale: “CBDCs Can Start Next Bitcoin Rally”
In a recent report, the team at Grayscale Investments suggested that the launch of the Central Bank Digital Currencies (CBDCs) would further increase the adoption of Bitcoin (BTC).
According to Grayscale, CBDCs will facilitate further Bitcoin acceptance by providing infrastructure and training that will lead to new BTC users.The report also noted that BTC’s shortage will differ from Bitcoin’s special and fiat currencies.The report also highlights the following:
… If CBDCs are successfully launched, infrastructure and training to accompany the use of these carrier assets can serve as a gateway for further adoption of Bitcoin and other digital currencies.
Increasing discourses about the issuance of the Central Bank Digital Currencies came to the fore with the spread of COVID19. For example, China has already started pilot tests of its digital Yuan, and many analysts say the U.S. will compete with China soon.
How Will Digital Yuan Work?
After the release of the Digital Yuan, it will be managed by a wallet application authorized by the People’s Bank of China and linked to the users’ regular debit card. Digital Yuan users can then pay for goods or services and receive money directly to their wallets via their mobile phones. A unique aspect of the digital wallet for Yuan is that users can trade without a mobile connection using a function called “touch and touch”. This feature allows two users to use their mobile devices to transfer.
All Roads Reach Digital Dollars in the USA
China’s progress in making digital money has not gone unnoticed by the United States. Earlier this year, the use of digital dollars was seen as a means of distributing measures packages to Americans to quickly clear them from the economic effects of Coronavirus. This idea was later replaced by physical controls, but the pressure of the US competing with China may require the release of a digital dollar soon.