President of the Bank of England Mark Carney said at a conference on the anniversary of the Swedish Riksbank that he is open to the perspective of the digital currency of the central bank (CBDC). Although he is not opposed to the idea of introducing CBDC, Carney stressed that any adaptation of the digital currency will not take place in the near future. The president of the British central bank said that cryptocurrencies are not currently money.
In February of this year, Carney sharply criticized digital currencies at an event at London's Regent's University, saying: "The cryptocurrency has so far failed in terms of aspects of traditional money. This is not a means of storing the value because it is on the whole map. No one uses it as a medium of exchange". Earlier this month, the Bank of England issued a working document that outlined various scenarios of possible financial risks and instabilities associated with the use of CBDC. The report states that in the scenarios described there was no reason to believe that the adoption of CBDC would negatively affect private loans or ensure full liquidity of the economy.
On the 350th anniversary of Riksbank, Carney stressed that "the past, present and future" of central banks were and are dependent on maintaining public confidence in the financial system. He added that since Brexit, the Bank of England has reviewed its financial system, which made it more shock-resistant, such as those that arise from risky decisions such as Brexit.
Other central banks in Europe are also considering adopting CBDC. Earlier this month, Norges Bank, the Norwegian central bank, issued a working document in which it considered creation of the CBDC as a cash supplement to "ensure trust in money and the monetary system". The aforementioned Riksbank also considers the use of e-crowns as the use of banknotes and coins in Sweden is becoming increasingly rare.
Let's now take a look at the Bitcoin technical picture at the H4 time frame. The price has made another local low at the level of $6,990, but the four-hour candle close was higher, so now the candle might be labeled as a hammer. If this is a trend reversal signal, then the market should test the technical resistance at the levels of $7,247 and $7,435. The impulsive scenario invalidation level is still seen at $6,402.
