Saxo Bank's Outrageous Prediction 2020: Asia Launches DLT-Based Asset

Major Danish bank Saxo Bank has predicted that Asia will launch its own blockchain-based digital asset in its new report of smashing predictions for 2020.

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.

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 weaponise the US dollar and its control of global finances."

Specifically, 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.

While Chinese renminbi is forecasted to be "Heavily prominent" in the ADR's combination of currencies, the U.S. dollar is weighted at below 20%, according to Saxo Bank's prediction.

Blockchain technology will be implemented in order to provide stability of the money supply and tracking transactions in the ADR, Saxo Bank stated.

Saxo Bank's Asian digital currency prediction for 2020 is not the first forecast by the bank associated with blockchain technology.

In mid-April 2018, Saxo Bank predicted that cryptos will see a major bull market in Q2 2018.

In 2016, when Bitcoin was trading between $450 and $950, Saxo Bank predicted that Bitcoin will hit $2,100 in 2017.