New Bretton Woods And CBDC Push Bitcoin Over $12k

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Last Updated on 21 October 2020 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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Bitcoin moved beyond $12k for the first time since August again as Fed Chair Jerome Powell spoke of CBDC and the IMF floated the term “New Bretton Woods”.

An eToro analyst said in response to Bitcoin’s recent rise:

Bitcoin has been on a steady rise over recent weeks, driven partly by the news of Square’s $50 million bitcoin buy, and perhaps more substantially because of recent comments from U.S. Federal Reserve Chairman Jerome Powell regarding CBDC adoption in the U.S.

Advertentie.

International Monetary Fund

You may have seen that the term “New Bretton Woods” is being floated online to see if it sticks with those in power. The idea behind it is that the IMF (International Monetary Fund) and central bankers worldwide are starting to realize that a new package of stimulus measures will be needed both in the US and Europe to deal with the second (and possibly third) wave of the Covid-19 pandemic which we’re all experiencing.

After Ireland was the first to yield and impose a new lockdown, it is only a matter of time before other nations follow suit in Europe, or at least that is the expectation.

1944

Any second lockdown in a major European nation would probably come with descending stock markets, further economic hardship and mass unemployment. Therefore, none of the big Western World (EU and North America) economies wants to be the first to admit that a new countrywide lockdown will be necessary.

The IMF however is looking further ahead and is floating the idea of a new Bretton Woods which, as you may remember, was the agreement in 1944 that integrated the gold standard and implemented a monetary world order, mostly based on the value of the US dollar.

This time round however, the idea would be to go with a “digital currency,” which would of course mean fantastic news for Bitcoin, as it would spread knowledge about cryptocurrencies and CBDC (Central Bank Digital Currencies). Even the simple mention by the Fed Chairman of CBDC was enough to push Bitcoin higher.

On the other hand, Bitcoin has become an investment opportunity for many classic Wall Street investors as of late. So much so even, that it seems to move in tandem with US stocks. And thus, if a second wave of the Coronavirus would mean a second EU lockdown, would stock markets (and thus also Bitcoin) sell off in November?

The next few weeks will tell who wins out.