In its recent order, The European Central Bank intensify the investigations against the euro-digital currency. Experts seem to have divided opinions about the impacts their decision will have on cryptocurrency. In the past couple of years, the Crypto trading market has been through rough periods. In recent days Bitcoin and Ether have enjoyed a stable position. This stability shows that the market will touch a new peak.
Christine Lagarde, The President of The European Central Bank via Twitter, addressed the European citizens that the central bank has decided to fasten its investigations against the euro-digital currency. However, countless rumors and speculations about how the central bank’s digital Euro will affect the overall market trends and market price range.
For now, the implications of these projects remain concerns for the future. It is estimated that the investigation phase will last for two years. The expected time frame for the completion of the investigation is two years. Central bank euro digital cloud is not a new phenomenon to the Europeans. Many European countries and citizens have been using it for the past couple of years. The governments of various European countries realized that the popularity of the cryptocurrency market reached a level where the government can resist it anymore. Even though if they tried to oppose, people will go for crypto trading one way or another.
The Idea of Centra bank digital currencies is deemed as a knockout punch for some cryptocurrencies. It is said that the European Central Bank digital euro will be valued against the actual value of its fiat. The future of the crypto market in Europe will see direct competition between; euro-backed stable coins and Centra bank-backed digital Euro.
The stable nature of CBDCs will be less vulnerable to market volatility. However, the market stability will ensure investment safety. But people will not be able to earn massive returns in investment. It can be projected that European Crypto Market in the future will be divided into two investment philosophies. Firstly, there will be those who want to have a sustainable return on their investment. Secondly, there will be those who will be looking forward to taking risks to gain returns.
Cryptocurrencies such as bitcoins, ether, stablecoins, etc. have strong customer appeal because people consider them a safer option. The experts believe that the Digital euro will only be successful if it addresses the customers’ concerns and needs. As of today, 46 countries are researching and investigating CBDCs. Whether it is a better payment method for the traders or not. The European central bank officials believe that the digital euro idea is an easier, economical, and more protected method of transferring payments.