Crypto news on Wednesday

There are a lot of cryptocurrencies. However, Bitcoin retains its status as the biggest crypto money in the market. It is important to mention that Bitcoin is the oldest cryptocurrency, and despite fierce competition throughout its history, it still attracts crypto owners.

Nevertheless, the path to crypto adoption is not easy due to various reasons such as regulations, the backlash from governments, etc.

One of the biggest challenges is the lack of infrastructure, according to Gita Goripanth. She is a chief economist of the International Monetary Fund. She became the chief economist one year ago in January 2019. Goripanth mentioned that cryptocurrencies are offering exciting possibilities. Nevertheless, due to the fundamental issues, crypto won’t be able to challenge the dollar’s status.

She underlined several factors on why the dollar is famous around the globe. For example, the dollar is supported by the rule of law as well as other factors such as investor protection, etc.

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However, other prominent economic figures believe in Bitcoin. The governor of the Bank of England Mark Carney suggested a central bank digital currency (CBDC) backed by a basket of reserve currencies could support national economies.

Moreover, the People’s Bank of China announced that it plans to launch digital yuan as it was close to complete this long-awaited project.

Crypto and the Middle East

On Wednesday, Bitcoin’s price reached the highest point in seven weeks. This happened early on January 8 during the Asian trading hours.

The price of the biggest cryptocurrency reached this result as Iran launched retaliatory attacks on the American bases in Iraq. Moreover, gold which is a classic haven asset surpassed more $1,600 for the first time since 2013. Also, other anti-risk assets such as Japanese yen, Swiss franc, and U.S. bonds strengthened their positions.

Bitcoin has the potential to become the safe-haven. The latest conflict in the Middle East once more underlined its position.