{"id":480316,"date":"2022-08-02T11:41:38","date_gmt":"2022-08-02T08:41:38","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/european-central-bank-bets-on-cbdcs-over-btc-for-cross-border-payments\/"},"modified":"2022-08-02T11:41:38","modified_gmt":"2022-08-02T08:41:38","slug":"european-central-bank-bets-on-cbdcs-over-btc-for-cross-border-payments","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/european-central-bank-bets-on-cbdcs-over-btc-for-cross-border-payments\/","title":{"rendered":"# European Central Bank bets on CBDCs over BTC for cross-border payments"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a4072a662493\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a4072a662493\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/european-central-bank-bets-on-cbdcs-over-btc-for-cross-border-payments\/#%E2%80%9D_European_Central_Bank_bets_on_CBDCs_over_BTC_for_cross-border_payments_%E2%80%9C\" >&#8221; European Central Bank bets on CBDCs over BTC for cross-border payments &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_European_Central_Bank_bets_on_CBDCs_over_BTC_for_cross-border_payments_%E2%80%9C\"><\/span>&#8221; European Central Bank bets on CBDCs over BTC for cross-border payments &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDgvYzJiMTdiZWYtZWUyMy00M2FmLWJlNjktMjBjZGRhOGNhNjMxLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-28d77a7a>A recent <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.ecb.europa.eu\/pub\/pdf\/scpwps\/ecb.wp2693~8d4e580438.sk.pdf?972bbc119868c193467dc86f4a7cf706\">study<\/a> conducted by the European Central Bank (ECB) on identifying the ultimate cross-border payment medium crowned central bank digital currencies (CBDCs) as the winner against competitors, including banking, Bitcoin (BTC) and stablecoins, among others.<\/p>\n<p>ECB\u2019s interest in identifying the best cross-border payment solution stems from the fact that it serves as the central bank of the 19 European Union countries which have adopted the euro. The study, \u201c<em>Towards The Holy Grail of Cross-border Payments<\/em>,\u201d referred to Bitcoin as the most prominent unbacked crypto asset.<\/p>\n<p>EBC\u2019s opinion of Bitcoin as a bad cross-border payment system boils down to the settlement mechanism of the highly volatile asset, adding that:<\/p>\n<blockquote><p>\u201cSince the settlement in the Bitcoin network occurs only around every ten minutes, valuation effects are already materializing at the moment of settlement, making Bitcoin payments actually more complicated.\u201d<\/p><\/blockquote>\n<p>While the study highlighted Bitcoin\u2019s inherent scaling and speed issues, it failed to consider the timely upgrades \u2014 Taproot and Lightning Network \u2014 that improve the network performance, concluding that \u201cThe underlying <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> (and in particular its \u201cproof-of-work\u201d layer) is inherently expensive and wasteful.\u201d<\/p>\n<p>On the other hand, the ECB recognized CBDCs as a better fit for cross-border payments owing to greater compatibility with forex exchange (FX) conversions. Two major advantages highlighted in this regard are the preservation of monetary sovereignty and the ease of instant payments via inter<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>ries such as central banks. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Australian central bank governor favors private sector crypto technology<\/em><\/strong><\/p>\n<p>Contradicting the ECB\u2019s reliance on CBDCs, Australian central bank Governor Phillip Lowe believed that a private solution \u201cis going to be better\u201d for cryptocurrency as long as risks are mitigated through regulation.<\/p>\n<p>Mitigating risks related to crypto adoption can be fended off by strong regulations and state backing, stated Lowe, adding:<\/p>\n<blockquote><p>\u201cIf these tokens are going to be used widely by the community, they are going to need to be backed by the state or regulated just as we regulate bank deposits.\u201d<\/p><\/blockquote>\n<p>In Lowe\u2019s view, private companies are \u201cbetter than the central bank at innovating\u201d the best features for cryptocurrency.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/european-central-bank-bets-on-cbdcs-over-btc-for-cross-border-payments\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; European Central Bank bets on CBDCs over BTC for cross-border payments &#8220; A recent study conducted by the European Central Bank (ECB) on identifying the ultimate cross-border payment medium crowned central bank digital currencies (CBDCs) as the winner against competitors, including banking, Bitcoin (BTC) and stablecoins, among others. ECB\u2019s interest in identifying the best&#8230;<\/p>\n","protected":false},"author":1,"featured_media":480317,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDgvYzJiMTdiZWYtZWUyMy00M2FmLWJlNjktMjBjZGRhOGNhNjMxLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,76276,74894,75046,75022,75604,76845,74889,74355,117,28340,70934],"class_list":["post-480316","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-payments","tag-blockchain","tag-cbdc","tag-central-bank","tag-euro","tag-p2p-payments","tag-payments","tag-adoption","tag-business","tag-europe","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/480316","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=480316"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/480316\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/480317"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=480316"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=480316"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=480316"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}