The European Central Bank, in a study on cross-border payments, concluded that central bank digital currency forms will work more efficiently than Bitcoin and stable cryptocurrencies.
In the study titled “Towards the Main Goal of Cross-Border Payments” prepared by the European Central Bank (ECB) officials, the development proposal of CBDC clarifies the positive stance of the ECB towards blockchain technology. In addition, the study defined BTC as an unsupported crypto asset, reflecting the bank's stance against cryptocurrencies. The ECB, which acts as the central bank for the 19 member states of the European Union that uses the Euro as their national currency, is in a position to play an important role in the future of cross-border payments.
The ECB’s latest study focused on Bitcoin (BTC) having scaling and speed issues while being described as costly and wasteful due to its proof-of-work consensus mechanism. In addition, the ECB claimed that Taproot and its scaling solution Lightning Network were not efficient in the update efforts to improve the performance of the Bitcoin network.
According to the results of the study, the ECB argues that the central bank digital currency will be a better option for cross-border payments due to the advantage of exchange between country currencies. Other key benefits associated with CBDC are the preservation of monetary sovereignty and the availability of centralized intermediaries such as central banks. Meanwhile, CBDC development activities continue in Europe. According to the latest developments, the European Commission wants to implement the CBDC project in 2023.
Data shows Bitcoin and Ethereum sentiment bullish despite slight dip in August
Crypto analytics platform Santiment recorded a weighted sentiment of 0.25 for Bitcoin, while a weighted sentiment of 0.32 for Ethereum in its data released today. According to market sentiment, it is interpreted that Bitcoin and Ethereum are not experiencing FUD (fear, uncertainty and doubt) as investors have opted to buy the dip lately.