Crypto Scoop: Bitcoin Hits 1 Billion Transactions Amid Positive Price Predictions

As the market rebounds from last week's price drop, Bitcoin celebrates a significant milestone, and industry stakeholders share optimistic predictions for its future.  In this edition of the Crypto Scoop, we review the following:

Price moves of top cryptocurrencies

Bitcoin attains a milestone of one billion transactions

Rwanda shares plans for CBDC 

Taiwan announces crypto regulation initiatives.

Crypto Markets Show Signs of Rebound Amid Bullish Predictions

Although cryptocurrency prices dropped last week, both Bitcoin and Ethereum are now trading comfortably above $62,000 and $3,000, respectively.

Market intelligence firm Glassnode suggests that Bitcoin could be on the verge of a significant upward move. Founders Jan Happel and Yana Allemann noted a "bullish candle hammer" on Bitcoin's weekly price chart, indicating a potential reversal of the past month's downtrend.

Adding to the optimistic outlook, Twitter co-founder Jack Dorsey has boldly predicted that Bitcoin will reach "at least a million" by 2030. In a May 9 interview with journalist Mike Solana on Pirate Wires, Dorsey expressed confidence in Bitcoin's long-term value, suggesting it could grow beyond that point.

Investment research firm Bernstein also remains bullish on Bitcoin, predicting Bitcoin will hit $150,000 despite a recent price dip. Analysts Gautam Chhugani and Mahika Sapra stated that Bitcoin's network metrics indicate a healthy cycle that is still in its early stages, implying that the leading cryptocurrency is far from reaching its peak.

Bitcoin Network Achieves Major Milestone with One Billion Transactions Amid Mining Difficulty Adjustment

The Bitcoin network has processed its one billionth transaction, marking a significant milestone 15 years after its creation. Clark Moody’s Bitcoin dashboard reported that transaction number 1,000,000,000 was processed in block 842,241 at 9:34 pm UTC on May 5. This achievement comes 15 years, four months, and four days after the pseudonymous creator Satoshi Nakamoto mined the network’s first block on January 3, 2009. Over its 5,603-day existence, the Bitcoin network has processed an average of 178,475 daily transactions. This count does not include transactions made on the Lightning Network, a layer-2 payment protocol enabling faster transactions.
Meanwhile, post bitcoin halving, the network's mining difficulty has seen its largest negative adjustment since December 2022. According to data from the real-time Bitcoin dashboard Bitbo, the mining difficulty fell 5.7% to 83.1 trillion on Thursday at block height 842,688. This metric measures how challenging it is to produce a new block. It automatically adjusts after every 2,016 blocks, or roughly every two weeks, to maintain an average block production time of 10 minutes.

Rwandan Central Bank Proceeds with Ambitious Retail CBDC Project Amid Global Digital Currency Advancements

The National Bank of Rwanda (BNR) is forging ahead with its ambitious retail central bank digital currency (CBDC) project, aiming to propel the country towards a cashless economy. The BNR recently completed a feasibility study on a retail CBDC and has now opened it to public comment. This digital currency initiative integrates the latest technological advancements and caters specifically to local conditions.

A retail CBDC would support Rwanda’s national cashless economy initiative and enhance the resilience of its financial system, which frequently faces power outages. Despite its push for a cashless economy, the BNR anticipates spending $35 million on cash printing and maintenance over the next five years. The proposed CBDC would be interest-free, intermediated, and interoperable with existing payment systems and potentially other CBDCs following amendments to the Central Bank Act. The BNR favours a token-based model featuring open programmability and smart contracts.

Similarly, India is advancing its own CBDC project, which focuses on offline transferability. Reserve Bank of India (RBI) Governor Shaktikanta Das emphasised the importance of the digital rupee functioning without internet access to replicate cash transactions. This feature aims to enhance the digital rupee’s accessibility and user experience, promoting its adoption across diverse demographics in India.

During a recent event hosted by the Bank for International Settlements (BIS), Governor Das highlighted the RBI's progress in enhancing the utility of its CBDC. He noted, “One of the key features of cash is that it works offline … We are working on making the CBDC transferable in the offline mode also.”

Taiwan and Hong Kong Strengthen Crypto Regulations and Innovate with Digital Solutions

Taiwan and Hong Kong are making significant strides in enhancing cryptocurrency regulation and digital financial innovation. Taiwan's Ministry of Justice has proposed amendments to its Anti-Money Laundering (AML) regulations, targeting fraud and bolstering measures for virtual asset service providers (VASPs). These amendments, which include potential jail terms and hefty fines for non-compliance, are part of the “New Four Laws to Combat Fraud” initiative and aim to strengthen the country's financial security. The proposed changes are now awaiting review by Taiwan's national parliament, the Legislative Yuan.

Meanwhile, the Hong Kong Monetary Authority (HKMA) is advancing its efforts in asset tokenisation. HKMA announced the formation of the "Project Ensemble Architecture Community" on May 7, including industry representatives and regulators to establish tokenisation standards and promote interoperability among wholesale central bank digital currencies (wCBDCs). This initiative aims to modernise financial transactions and enhance the digital economy by creating a seamless mechanism for interbank settlements of tokenised assets.