empty
23.11.2021 06:47 AM
BoE believes in success of CBDC. Pure starts development of its own CBDC

Bitcoin stopped its 3-day rally with a rapid decline to almost its one-month low. Although there are some technical factors, the interview with the BoE's representative also caused a drop in BTC. Jon Cunliffe said that there was a trend away from physical cash in many advanced economies, thus showing the necessity of a new digital currency.

Jon Cunliffe

This image is no longer relevant

The central bank's Deputy Governor Jon Cunliffe said that "technology including the internet and the popularity of credit and debit cards are reducing the role cash played in transactions". He supposes that authorities will have to adapt to the new conditions to keep cash in the financial system. "Central bank state-issued money is disappearing," Cunliffe said. These announcements are expected to urge consumers to support a new form of money that "could be as secure as cash but as flexible and useful online as cards and crypto currencies".

Notably, the Bank of England and Treasury together with other central banks from all over the world are studying various ways to use the digital currency along with cash. Unlike deposits in banks, CBDC ( Central Bank Digital Currency) will be regulated by the government itself. The new CBDC will be developed to work with online payments.

The BoE emphasizes that until 2016, cash was the main payment method in the UK. However, it was replaced by bank cards and other payment methods. The pandemic made online payments even more popular.

He also added that people thought of money as pound or dollar notes. The fact is that people need a safe currency supported by the government in times of stress. CBDC could be used as cash as it does not require consumers or enterprises to handle the bulk of paper bills. "On the downside there will be a hit to banks," Cunliffe said. "If people move their deposits into CBDC there will be a hit to banks, and banks will have to adjust. People will use it, but you don't want them to use it in such a disruptive way that we can't adjust."

This image is no longer relevant

According to the latest news, the Central Reserve Bank of Peru is planning to develop its own digital currency. The announcement was made by Julio Velarde, the Chairman of the Central Reserve Bank of Peru. He supposes that the currency will be primarily used as a means of payment. However, he also admits that it is not the best time for changes since economies and markets are facing some uncertainty.

The regulator's chairman also said that they were already working on the digital currency creation. He believes that the development of such a currency will be necessary in the high-tech future. The regulator is cooperating with central banks from other countries, including India, Singapore, and Hong Kong. They consider digital currencies to be a new financial sphere. Although the regulator has just started the development of CBDC, Velarde thinks that their digital currency could be compared to other digital assets created by the ECB and the Fed.

The announcement surprised experts since Pure always opposed cryptocurrencies. The country is still in the initial stages of introducing cryptocurrencies. In addition, it does not have a legal basis for it. Thus, the process could be very long.

Technical analysis of BTC

This image is no longer relevant

After a rise to $68,800, BTC rapidly lost its gains on Monday. Buyers became active when the asset hit the level of $56,500. Now, everything depends on bulls ability to regain control over the resistance level of $60,000. If the price reaches this level, it is likely to jump to $64,000. If it declines below $56,4000, BTC may slide to $53,600 and $50,900.

Technical analysis of ETH

This image is no longer relevant

Yesterday, ETH slid to a new support level of $4,110. However, bulls managed to keep this level and returned the price to the resistance level of $4,360. It is a rather difficult area for buyers. If the price breaks this level, it will return to $4,578. If ETH breaks the level of $4,110, it may decline to $3,885 and $3,682.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Trump makes another step towards crypto market

Bitcoin and Ethereum plunged late yesterday but then managed to recover their positions. For now, the bears still have more strength than the buyers, but this may only be temporary

Jakub Novak 16:38 2025-04-11 UTC+2

Trading Recommendations for the Cryptocurrency Market on April 11

Bitcoin and Ethereum dropped in value toward the end of Thursday's U.S. session but recovered during today's Asian trading hours. It has become common practice that the crypto market declined

Miroslaw Bawulski 09:28 2025-04-11 UTC+2

Technical Analysis of Intraday Price Movement of Polkadot Cryptocurrency, Friday April 11, 2025

With the appearance of divergence between the price movement of the Polkadot cryptocurrency and the Stochastic Oscillator indicator on its 4-hour chart, as long as there is no weakening correction

Arief Makmur 08:52 2025-04-11 UTC+2

Technical Analysis of Intraday Price Movement of Uniswap Cryptocurrency, Friday April 11, 2025.

From what is seen on the 4-hour chart of the Uniswap cryptocurrency, there appears to be a divergence between the Uniswap price movement and the Stochastic Oscillator indicator, so based

Arief Makmur 08:52 2025-04-11 UTC+2

Trading Recommendations for the Cryptocurrency Market on April 10

Bitcoin and Ethereum both surged, gaining between 6% and 10% on news that Trump had suddenly changed his mind. A strong wave of FOMO is evident in BTC following news

Miroslaw Bawulski 08:05 2025-04-10 UTC+2

Bitcoin under selling pressure. Why even spike could hardly save bulls

Bitcoin is taking a nosedive, funds are reporting losses, and analysts see no reasons for growth. What is happening with the leader of the crypto market? What

Ekaterina Kiseleva 12:07 2025-04-09 UTC+2

Trading Recommendations for the Cryptocurrency Market on April 9

Bitcoin and Ethereum collapsed by the end of Tuesday, continuing the heavy sell-off during today's Asian session. Another sharp decline in the U.S. stock market dragged other risk assets down

Miroslaw Bawulski 09:22 2025-04-09 UTC+2

Another Cryptocurrency Market Crash

Another collapse in the stock markets has also hit the cryptocurrency market. Investors, fearing further declines, began to massively offload digital assets, which triggered a sharp drop in the prices

Jakub Novak 09:22 2025-04-09 UTC+2

Trading Recommendations for the Cryptocurrency Market on April 8

Bitcoin and Ethereum are gradually recovering after the sharp sell-off earlier this week. The situation in the U.S. stock market and its sharp decline are closely tied to the fall

Miroslaw Bawulski 09:25 2025-04-08 UTC+2

Bitcoin – Technical Analysis Overview

Currently, the market is testing monthly support levels at 79,773 – 75,446. A consolidation below this area would give bears control over these levels and invalidate the Ichimoku weekly golden

Evangelos Poulakis 07:36 2025-04-08 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.