Closely-followed economist and trader Alex Kruger says that the emergence of central bank digital currencies (CBDCs) is bullish for Bitcoin (BTC) and the broader crypto market.
In a new tweet, Kruger highlights a forecast from a research paper written by the Bank on Japan regarding CBDCs.
“There is a possibility of a surge in public demand for central bank digital currency (CBDC) going forward”
According to the economist, the development of CBDCs is bullish for the crypto industry as it signifies there will be “wallets awash with cash and improved fiat onramps.”
The growth of CBDCs is not the only possible bullish catalyst in sight, according to Kruger. The crypto influencer is keeping a close eye on the recent BTC purchases of financial services firm Square and business intelligence company MicroStrategy.
“A few corporations adding bitcoin to their balance sheets is both bullish and overrated. The function of a corporate treasury is not to *invest.* Corporate demand for gold as inflation hedge is minimal. Thus, the likelihood of a bitcoin domino effect among corporates is very low.
That said, if this were to become a trend, something interesting would happen: major banks would be forced to have a crypto team on payroll to service corporate clients’ hedging needs.”
Kruger also points out that the opportunity to print gains in BTC is borne out of its complexity.
“Nocoiners find bitcoin/crypto too complicated. They fail to understand that the more complicated, the better. If it were easy, everybody would already be invested in crypto, prices would be much higher, and there would be no opportunity.”
