The new ECB president, Christine Lagarde, said the bank was exploring the potential of the idea of issuing digital currency, which would directly provide liquidity to consumers.
In her first hearing before the European Parliament as the head of the ECB, Lagarde continued spreading the message that central banks may adopt a digital currency. Despite her friendly attitude to cryptocurrencies, she stated that direct liquidity injections might pose risks.
“A central bank digital currency would allow citizens to use central bank money directly in their daily transactions. However, depending on its design, a central bank digital currency could pose risks. For instance, they could alter how monetary policy is conducted and transmitted to the real economy.”
The ECB has the mandate to keep up liquidity while curbing inflation to a predetermined 2% rate. To achieve this, the bank lends liquidity to commercial banks, while also setting a base interest rate. The injection of liquidity uses legacy electronic systems, and the money then trickles down to the economy and consumers through lending and other commercial bank activities.
Technical analysis of Bitcoin (BTC):
Over the past day, the price of bitcoin fell to the support level of $7,100, then it bounced up to the resistance level of $7,250. Now, the price of bitcoin is $7,220. More than likely, the price of bitcoin will fall even lower. The nearest resistance levels are $7,250, $7,400, $7,670, $7,800, $7,900. The nearest support levels are $7,160, $7,100, $6,800, $6,500.
Technical analysis of Ethereum (ETH):
Over the past day, the price of ethereum fell to the support level of $143. Then it bounced up to the resistance level of $147. Now, the price of ether is $146. More than likely, it will fall even lower. The nearest resistance levels are $146, $147, $150, $152, $155, $157, $162. The nearest support levels are $145, $143, $141, $139, $137, $132.
Technical analysis of Ripple (XRP):
Over the past day, the price of ripple dropped to the support level of $0.2090. Then it bounced up to the resistance level of $0.2140. Now, the price of ripple is $0.2130. More than likely, it will drop even lower. The nearest resistance levels are $0.2140, $0.2170, $0.22, $0.2240, $0.2265, $0.23, $0.2320, $0.2380. The nearest support levels are $0.2090, $0.2040, $0.20.
