Bitcoin (BTC) and other cryptocurrencies its place in our lives is getting stronger. Even in some of the shopping we do in our daily life. BTC and we can use other cryptocurrencies.
While these developments are taking place, cryptocurrencies and stablecoinIt is said that they can also be used for cross-border payments.
However European Central Bank in a recent report bitcoin and that stablecoins may not be an option for cross-border payments.
AMB, Bitcoin and its stablecoins “worst option to reduce the cost of cross-border transactions and make it cheaper” described as.
BTC and stablecoinArguing that the global payment problems cannot be solved by the ECB, state-backed digital currencies (CBDC) thinks it is a better option to make cross-border transactions faster and cheaper.
The report also explained why Bitcoin is the worst option.
“Bitcoin’s use of the Proof of Work (PoW) system, widespread use for crime, and extreme volatility make BTC the worst choice for cross-border payments.”
Considering that 19 European countries that use the Euro as their national currency prefer CBDCs for cross-border payments, the ECB considers that CBDCs are more suitable for cross-border payments due to their greater compatibility with forex exchanges.
Fabio Panetta, member of the ECB’s Executive Board, previously described crypto as a ponzi scheme.
As it is known, AMB is working on a CBDC project.