The European Central Bank (ECB) is exploring the possibility of introducing a “digital euro” but calls not to forget about other instant payment systems.
Fabio Panetta, Member of the ECB Executive Board, called for the introduction of new mechanisms to maintain the sustainability of the payment sphere, which is especially important in times of crisis. Panetta paid special attention to the system of instant settlements called Target Instant Payment Settlement (TIPS), which the ECB started to develop in 2018 as the main competitor of the blockchain.
This system is used by commercial banks, but when implemented on a larger scale, it will allow for instant transactions between individuals and legal entities without restrictions, regardless of operating hours of organizations. As Panetta pointed out, TIPS will allow for more than 43 million instant transactions per day and handle up to 2000 transactions per second during peak periods. Despite the novelty of the system, the Swedish Central Bank is ready to implement it by 2022.
Panetta believes that to modernize the payment sector, banks should consider the possibility of making peering payments. Despite the updated Standards of the Single European Payment System (SEPA), they still have many shortcomings of the traditional financial system. As part of this initiative, the ECB started to explore the prospects for a “digital euro”, considering all the advantages and disadvantages of a digital currency, which should be used by intermediaries and ordinary citizens to make daily purchases with electronic devices.
Panetta believes that the realities of the coronavirus crisis must be taken into account when analyzing the opportunities and potential problems that Central Bank’s cryptocurrency may bring. However, we should not forget about other confidential payment systems with similar functions.
Previously, the ECB had already called on banks to develop a cheaper and faster payment solution to combat stablecoins like Libra. Also, the ECB was considering launching its cryptocurrency back in November to gain independence from international payment service providers.
Technical analysis of Bitcoin (BTC):
Over the past day, the price of bitcoin grew to the resistance level of $8,200. Now, the price of bitcoin is $8,150. In the future, we predict a technical correction downwards. The nearest resistance levels are $8,200, $8,400. The nearest support levels are $8,150, $7,900, $7,600, $7,500, $7,200, $7,000, $6,770, $6,400, $6,100, $6,000, $5,780.
Technical analysis of Ethereum (ETH):
Over the past day, the price of ethereum grew to the resistance level. Now, the price of ethereum is $208. In the future, we predict a technical correction downwards. The nearest resistance levels are $210, $215. The nearest support levels are $208, $205, $198, $193, $189, $186, $183, $178, $174, $169, $166, $157, $161.
Technical analysis of Ripple (XRP):
Over the past day, the price of ripple grew to the resistance level of $0.22. Now, the price of ripple is $0.22. In the future, we predict a technical correction downwards. The nearest resistance levels are $0.22, $0.23. The nearest support levels are $0.2150, $0.21, $0.2050, $0.19, $0.1820, $0.1770, $0.1750, $0.1680, $0.1570.
