Bitcoin prices and cryptocurrencies have soared in recent weeks, driven by a series of news and raised during the US election. But it’s not the first time
The value of bitcoin also rose after central banks around the world, adding the US Federal Reserve to the U. S. But it’s not the first time Last month, they indicated that they were contemplating digitizing their currencies, which could open the bitcoin and cryptocurrency market to millions.
Now, bitcoin and cryptocurrency observers are preparing for the European Central Bank ‘s (ECB) annual two-day forum, which begins today, with ECB President Christine Lagarde, who said last month that the ECB “should be in a position to factor on a virtual euro. “to communicate about the ‘implications of basic global adjustments for central banks’.
Lagarde will open this year’s occasion and is expected to join fed President Jerome Powell and Bank of England Governor Andrew Bailey with globalization, climate replacement and digitization on the agenda.
Cryptocurrency investors will be attentive to comments from major central bankers on how central banker studies and virtual currency (CBDC) are progressing and how governors expect CBDCs to have an effect on existing virtual currencies, such as bitcoin. .
“The central bank’s virtual currencies will be positive for bitcoin,” said Richard Paulsen, managing director of Oslo-based Arcane Media and Research, via email, explaining how CBDC expects for markets and the use of bitcoin and cryptocurrencies.
“The design of a CBDC, in retail markets, will take the form of a token. It also means that in order for it to serve as a means of payment, payment responses will have to move from today’s analog global to a true one. 1 virtual. This will make it much less difficult for e-commerce to transfer between CBDC and bitcoin with each individual transaction. “
Last month, Lagarde said he sought to “make sure the euro is compatible with the virtual age,” accompanied by an ECB announcement that “intensifies his paintings on a virtual euro. “
CBDCs have been a hot topic among central bankers for more than two years, and Facebook’s plans for its bitcoin-inspired cryptocurrency Libra have pushed countries around the world to act amid fears that a virtual currency popular personnel may undermine financial policy. has led to more central bank intervention in markets, seems to have attracted interest from CBDCs.
“Covid-19’s economic devastation and the collapse of old systems have led to the acceleration of any cutting-edge generation that can expand GDP and virtual and solid currencies have perfect compatibility with this narrative,” said Keld van Schreven, CEO and co-founder of virtual asset investment firm KR1.
“This is an unstoppable trend,” said Nick Jones, managing director of the Edinburgh-based Zumo bitcoin and cryptocurrency portfolio and payment platform. that the prospect of revolutionizing cross-border transactions is lost. “
The ECB has joined other primary central banks in ruling on CBDCs, with the release of China’s virtual yuan, which is currently being tested across the country, potentially threatening foreign dominance of the dollar and euro.
“Technology and innovation are turning what we consume, paint and interact with,” said Last month Fabio Panetta, president of the central bank’s Eurosystem’s high-level eurosystem virtual currency organization. Panetta will chair a consultation on demanding financial policy situations related to herbal interest rate reduction at the ECB’s annual forum.
“A virtual euro would help Europe’s preference to continue innovating,” Panetta added. “It would also contribute to its monetary sovereignty and the external role of the euro. “
Elsewhere, Fed President Powell said that while the Fed has not yet made a resolution on the issuance of a virtual currency, it is conducting studies and prioritizes “doing it right” than being the first.
“For us, it is more vital to do well than to be the first and to do well means that we are looking not only for the potential benefits of a CBDC, but also for the potential risks, and we also recognize the vital trade-offs that want to be considered thoroughly,” Powell said at a virtual invoice roundtable organized through the International Monetary Fund in October.
I am a journalist with significant experience in the fields of technology, finance, economics and business around the world. As founding editor of Verdict. co. uk, I pointed out that