Will Bitcoin Rise On ECB Digital Currency News?

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The new head of the European Central Bank, Ms Christine Lagarde, is set to start a two-day virtual conference involving several high profile names in global finance. On the agenda are the highly anticipated topic of Central Bank Digital Currencies or CBDCs. As Bitcoin is on track to have a fabulous year, even in a pandemic stricken economy, and China has already rolled out its own digital yuan to great fanfare, the crypto fans are eager to see what effect a digital euro could have on Satoshi Nakamoto’s invention.

Net Positive

Central bank digital currencies will be a net positive for bitcoin

Richard Paulsen, CEO of Arcane Media and Research, explained in a Forbes interview.

European Central Bank’s annual forum begins today—with Christine Lagarde, who last month said the ECB “should be prepared to issue a digital euro,” will speak about the “implications of fundamental global changes for central banks”🔥

⁦@ForbesCrypto⁩ https://t.co/cORo3m4C3b

— Hailey Lennon (@HaileyLennonBTC) November 11, 2020

The structure of a CBDC, in the retail markets, will definitely be in the form of a token. This also means that for it to work as a payment method, payments solutions have to be changed from today’s analogue world, to a truly digital one. This will make it much easier for e-commerce to switch between CBDCs and bitcoin on each individual transaction.

Others mostly agree, claiming that the rise of CBDC’s as a new form of payment are in this day and age simply the future.

#ECB European Central Bank President #ChristineLagarde said policymakers are “exploring the possibility of launching a #digitaleuro”
Lagarde previously described the digital euro as a potential complement to #cash, not a replacement for it

READ ➡️ https://t.co/O4lDELtssU pic.twitter.com/fxMWCi9YCS

— BeInCrypto (@beincrypto) November 11, 2020

This is an unstoppable trend,” Nick Jones, CEO of cryptocurrency payments platform Zumo, said “the key to the success of CBDCs is that they exist on the public blockchain so that there is interoperability between CBDCs and the potential to revolutionise cross border transactions isn’t lost.

Facebook push

Even more than the fact that China is ahead in the race to develop its own digital currency was the news that Mark Zuckerberg, CEO of global social media platform Facebook, was ready to roll out Libra, a major stablecoin that users could make payments with.

As Facebook has 2 billion users by now, the spread of such a digital currency could easily rival any major central bank. Many onlookers claim that not China but Facebook’s Libra is what prompted both the European Central Bank and the US Federal Reserve to start develop their own CBDCs.

According to social media rumors, the US one would not be the “digital dollar” but instead the “Fedcoin”… good joke.