EKMH Innovators Interview Series: 2020 Blockchain Predictions Week
An interview series spotlighting global tech influencers, disruptors, visionaries, and of course, innovators.
‘Tis the season for reflections and looking ahead to the new year. To celebrate the holidays, this week the Innovators Series has focused on the Blockchain, Crypto and Fintech predictions of mavericks and mavens in the sector. What a week its been, a true Blockchain blitz!
Blockchain Predictions Week 2020 comes to an end with Utrust Co-Founder and CIO Filipe Castro sharing his exceptions for the sector:
*My major predictions for 2020 align with the overall industry trends of maturity and focus on well-defined use-cases with a clear value proposition. Some companies will continue to grow while many initiatives will run out of momentum and credibility.
*In terms of verticals, I believe gaming and gambling will be one of the biggest growth areas. These are segments where the user base is well-versed in the virtualization of value and the businesses benefit significantly from decentralized economic models.
*Conversely, online e-commerce is also well positioned to grow in tandem as one of the largest markets for mainstream use.
*The acceptance of cryptocurrencies by merchants is also likely to expand, due to the growth of specialized merchant service providers.
*The increased number of transactions, higher number of supported cryptocurrencies and associated provider revenue will likely double in size.
*While I don’t think we will see a CBDC issued by one of the G20 countries in 2020, central banks will continue to research and define the economic foundations of the models to be implemented. Due to the highly technological nature of these initiatives, this may involve close partnerships with select private entities in the space, either as direct consultants or advisors.
*States will continue to compete for blockchain innovation and resources, incentivizing startups and entrepreneurs to set up in their jurisdiction. In this regard, while hubs such as Switzerland and Singapore continue to be proactive jurisdictions, China will be stepping up on their resolution to make Shenzhen the leading hub for blockchain startups in Asia.
* On the digital currency side, I foresee that the Libra network will launch in 2020, albeit with some changes to the underlying model, in order to comply with regulatory demands. This will bring more competition to the stablecoin market, putting further pressure on other collateralized stablecoin options. Libra’s launch could drive unprecedented awareness towards the broad crypto asset market, driving up the increase of total ecosystem users. After it launches, other competing consortiums will likely follow by announcing similar initiatives.
*With regards to Bitcoin, it is unclear whether new price points will be reached in 2020, but it is likely we will see a price appreciation in the market. This is in anticipation of the Bitcoin mining reward halving in May. This alone may generate a new wave of interest from institutions and the media on the specific elements that drive its value.