European Central Bank continues to develop ‘digital euro’

The European Central Bank continues with the plan for a ‘digital euro’. Over the next two years, the ECB will be working on a concept for its own crypto coin that, according to the bank, should “supplement cash, not replace it”. The first step is to map out the practical use.

No green light

The European Central Bank has given the green light to proceed with the project. The ECB will soon start its investigation phase. Among other things, a concept version of the coin is made, and various possible obstacles are mapped out. The investigation phase will last 24 months, the ECB says.

During that research phase, the bank wants to investigate what a possible functional design for a digital euro looks like. The bank will use focus groups, as well as create prototypes and ‘conceptual works’ of a digital version of the currency. has enough information. In addition, in the investigation phase, legal frameworks are examined together with European authorities. Finally, the researchers look at ‘the possible impact of a digital euro on the market’, and at various designs in which privacy and ease of use are paramount. “The research will also define a revenue model for intermediaries within the ecosystem,” writes the ECB.

Digital currency

The European Central Bank has long wanted a digital currency. This should be a counterpart to cashless money, and be managed by a central authority. In January of this year, the ECB opened a consultation on the plans, although it does not refer to the results in the new announcement. Experiments have also been conducted in the past on privacy, anti-money laundering, the ledger that tracks transactions, and practical use when no internet is available. ‘No technical obstacles were found’.

It is still not known what the digital euro should look like. Initially, the bank hinted that it would not use blockchain specifically, but in the new announcement it alludes to that. Blockchain could be a possible ledger, but so can the Target Instant Payment Settlement system. Both could process 40,000 transactions per second. has enough information. “The experiments also show that central and decentralized elements can be combined,” the bank writes. According to those experiments, the infrastructure would also be environmentally friendly. “For the architectures tested, the power consumption of tens of thousands of transactions per second is negligible compared to the power consumption of cryptocurrencies such as bitcoin.”

Crypto Price Prediction: Bitcoin Could Be Left in the Dust by Ethereum in 2021

Bitcoin and cryptocurrency prices have seen a remarkable recovery in the past week, reviving a tired crypto market. Bitcoin price is up nearly 30% in the past week, with ethereum up more than 20% (subscribe now to Forbes’ CryptoAsset & Blockchain Advisor and discover crypto blockbusters poised for 1,000% gains).

Now, an expert crypto panel has predicted that ethereum could double in price to $4,600 by the end of 2021 — a rise that would dwarf the panel’s forecast of bitcoin price. Polygon MATIC price has risen.

Price of Ethereum

“Ethereum’s price largely follows bitcoin’s halving cycles, although that relationship may begin to decouple over time, and as ethereum continues to develop use cases that bitcoin cannot reach,” said crypto founder Daniel Polotsky. ATM operator CoinFlip. “Its price could grow faster than bitcoin’s.”

Many panelists pointed to Ethereum’s highly anticipated upgrades designed to improve Ethereum’s scalability and efficiency, which started in late 2020 as the reason for their bullish forecasts. Earlier this year, ethereum co-founder Vitalik Buterin said upgrades that destroy (or “burn”) ether tokens could mean ethereum becomes more “sound” than bitcoin.

Switching from Ethereum

“The move from Ethereum to proof-of-stake later this year or early 2022 will lead to the supply of ethereum becoming deflationary and equating to multiple bitcoin halvings [cuts in bitcoin’s supply of new tokens] in terms of supply constraint,” said Token Metrics senior cryptocurrency investment analyst Forrest Przybysz, who believes ethereum will be worth $8,000 by the end of the year. “This makes it a better store of value than bitcoin, in addition to all the utility it offers that bitcoin doesn’t.” Chainlink (LINK) price has risen.

The panel average of 42 senior cryptocurrency specialists and academics, compiled by the personal finance comparison site Finder, predicted that Ethereum could be worth $4,596 by the end of 2021. Longer-term, the panel predicted that ethereum could reach $17,810 by the end of 2025 and $71,763 by the end of 2030, with 68% of the panel saying ethereum will eventually surpass bitcoin.

Earlier this month, the Finder panel predicted that bitcoin will overtake the US dollar as the dominant form of global financing by the year 2050, pushing the bitcoin price to just over $66,000 by the end of 2021.