Saxo Bank, the major Danish bank, has predicted that Asia will launch its own blockchain-based digital asset in its new report of smashing predictions for 2020.
According to a tweet by the bank, it has been reported on December 3 that the latest edition of “Outrageous Predictions” by Saxo Bank also forecasts that President Donald Trump will likely lose the 2020 elections, while Hungary will leave the European Union.
Likewise, Saxo Bank claims that Asia will launch a new reserve asset in order to “confront a deepening trade rivalry and vulnerabilities from rising US threats to weaponize the US dollar and its control of global finances.”
However, the bank predicts that the new asset, called the Asian Drawing Right, or ADR, will be issued by the Asian Infrastructure Investment Bank. The new digital asset will be “driven by blockchain technology” and based on regional central bank reserves, while its backing will be a basket of global currencies and gold.
According to the prediction by Saxo Bank, while the Chinese renminbi is forecasted to be “heavily prominent” in the ADR’s combination of currencies, the U.S. dollar is weighted at below 20%. Total backing for the coin will be worth $2, making the ADR “the world’s largest currency unit.”
So, according to the forecast, the move is “clearly” aimed at reducing the impact of the U.S. dollar in regional trade and local economies.
However, Saxo Bank stated that blockchain technology will be implemented in order to provide stability to the money supply and tracking transactions in the ADR.
It has also been reported that Asian digital currency prediction for 2020 is not the first forecast by the bank associated with blockchain technology. In fact, the bank has made multiple predictions about the major cryptocurrency Bitcoin (BTC) and other crypto markets to date.
In mid-April 2018, Saxo Bank predicted that cryptos will see a major bull market in Q2 2018. However, after a short bull trend in April, crypto markets saw a major bearish move throughout the second quarter.