ECB: National cryptocurrencies may become more popular than bitcoin

According to a recent study conducted by the European Central Bank (ECB) to determine the best international payment instrument, national cryptocurrencies (CBDCs) have a good chance of becoming more popular than bitcoin.

As it became known, the ECB representatives called bitcoin an unsecured digital asset with a complex transfer mechanism. However, according to experts, the European Bank’s study did not take into account the Taproot and Lightning Network updates that speed up bitcoin transactions while reducing costs.

The ECB concluded that CBDCs are more suitable for international transactions due to «better compatibility» with currency conversions. Among the main advantages of national cryptocurrencies are the preservation of monetary sovereignty and the convenience of instant payments through intermediaries such as central banks.

As a reminder, Jamaica was the first country to legalize CBDCs on a legal level. Thus, in early June, the Central Bank of Jamaica officially recognized JAM-DEX as a legal tender, and in late July, it became known thatCBDCs were being sold. The authorities took this step to support the country’s economy by creating an alternative to fiat cash. The National Bank of France has also recently announced plans to launch its own digital currency by 2023. And the International Monetary Fund has concluded that some cryptocurrencies and central bank digital currencies can be a more efficient payment solution than credit and debit cards, especially in the context of energy consumption.