Head of Chinese Central Bank wants to speed up digital yuan launch, and Bitcoin breaks above $12.3K after PayPal says its wallet will support BTC

Head of Chinese Central Bank: we need to speed up the launching of digital yuan

The head of the People’s Bank of China, Yi Gang, said that the digital yuan will become the main driving force of the country on the path to creating a digital economy.

According to him, the population’s demand for virtual currency is growing, so it is important to accelerate its launch. With its help, the authorities will be able to improve the convenience and security of payments. The official also noted the success of testing the digital yuan, when 50,000 residents of the country received virtual money for free. They could only be spent on purchases at specific retail outlets.

During the week, users spent 88% of the funds received, and some even bought another 900 thousand digital yuan.

Bitcoin breaks above $12.3K after PayPal says its wallet will support BTC

Data from Cointelegraph Markets and Coin360 showed a strong bullish run for BTC on Wednesday.

An hour after announcement that payment giant PayPal will support BTC in its wallet and Venmo up, BTC/USD graph formed a focal point of $12,300.

The news added to an already upbeat BTC trading environment, with $12,000 resistance diminishing overnight on Tuesday.

PayPal would also support altcoins ethereum, litecoin, and bitcoin cash. Following the announcement, ETH/USD rose by a modest 2.2% to $378, while BCH/USD put in 4.5% gains to reach $456.

Morgan Creek Digital: bitcoin target in 2021 $ 100,000–250,000

Anthony Pompliano, co-founder of investment firm Morgan Creek Digital, shared a forecast for the price of BTC for 2021.

In a mailing list for clients, the businessman said that the cryptocurrency will rise in price by at least 10 times. This is driven by demand from institutional players such as investments from MicroStrategy and Square. In addition, the policy of the US Federal Reserve depreciates the dollar and makes deflationary bitcoin an attractive asset for investments.

“You could evaluate this situation as (a) demand is increasing significantly, (b) the supply shock is making Bitcoin more scarce, and © the available float is much smaller than people actually realize. This framework leads me to believe that we are going to see a violent upward movement in the Bitcoin price by the end of 2021. My base case is approximately 10x to $100,000 and the bull case is around $250,000 per Bitcoin,” Pompliano wrote.