Tezos Market Update: France to make CBDC on Tezos blockchain, price remains unaffected
- Tezos was chosen for the CBDC project due to its superior underlying technology.
- XTZ/USD bulls lost momentum at the $2.65 level and dropped to $2.45 over the last three days.
Societe Generale-Forge (SGF) announced that they had chosen the Tezos blockchain to create France’s central bank digital currency (CBDC). Nomadic Labs announced via twitter. They are a Tezos development firm that will also be contributing to the project.
#Tezos selected by @SocieteGenerale -Forge for its Central Banking Digital Currency experiment. Nomadic Labs is proud to contribute to this project. More info below:https://t.co/gpblNTYzVX
— Nomadic Labs (@LabosNomades) September 15, 2020
Tezos’ following advantages were crucial in the decision-making process:
- Seamless on-chain governance.
- Liquid proof-of-stake consensus mechanism.
- Formally verified smart contracts.
As per SGF, these factors make Tezos ideal for “high-value financial applications.” Potential partners for the CBDC project, as short-listed by Banque de France (France’s national bank), include Accenture, HSBC, and Seba Bank.
XTZ/USD daily chart
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Despite the news, the price has remained unaffected by it. XTZ/USD bulls had previously lost momentum at the $2.65-level, following which it dropped to $2.45 over the last three days. The relative strength index (RSI) is hovering next to the oversold zone. This means that the bears can drop the price down to the $2.39 support level. Following this, the RSI will dip into the oversold zone, which may trigger a bullish revival.
Author
Rajarshi Mitra
Independent Analyst
Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.
