- The unseen war between Central Bank Digital Currencies (CBDCs) and privacy tokens wages on.
- These privacy tokens include Monero, Dash, and ZCash.
The frenzy amongst many nations to implement a Central Bank Digital Currency (CBDC) has turned out to be a blessing in disguise for privacy coins. So far, Monero (XMR), Dash (DASH), and ZCash (ZEC) have gained significant popularity amongst members of the crypto community.
Their ability to offer financial freedom while maintaining anonymity has made these privacy-centric cryptocurrencies close rivals of CBDCs.
CBDC and Privacy Coin Narrative
While CBDCs are preferred by many governments and financial institutions as a more convenient form of crypto asset, investors are concerned about the shortcomings of the national digital currency. There is the fear of the risk of censorship from the government that will end up issuing it plus the little or no privacy that CBDC offers. Many governments believe that issuing a CBDC will enable them to control the use of digital assets in their economies.
Therefore, instead of addressing the aforementioned drawbacks of a potential national digital currency, they are quick to promote the supposed benefits of implementing one. Most of the time, these governments and central banks talk about the safety, low account maintenance fees, faster transactions, and ultimately greater financial inclusion which CBDCs provide. Still, netizens think that these advantages are not enough to take away financial freedom and privacy.
Hence, as CBDC research, experimentation, and implementation are coming on stronger, so is the push for privacy-centric cryptocurrencies. Amongst Monero, Dash, and ZCash, there is also a differing degree of privacy but choosing which offers the best privacy is a question of preference that can be influenced by several factors including liquidity and ease of use.
Currently, XMR seems to be leading the pack in terms of a possible bull run. At the time of this writing, it was trading at $164.76, after hitting a 3.33 percent increase in the last 24 hours.
Noteworthy, the crypto token is also averaging the recent price rally in the broad crypto market. Monero’s positive momentum has been established seeing that it has gained about 12.99 percent in the past week. While this is an impressive turn of events, maintaining a bull run will be largely dependent on the protocol’s key initiatives in the near term.
The same sentiment appeals to Dash and ZCash both of whom have printed a similar growth relative to that of Monero.
Monero Suffers FUD Owing to SEC Crackdown
Monero’s market price is growing while its trading volume is experiencing a sharp decline. Specifically, data shows a 12.37 percent slump in its trading volume overnight.
This unimpressive trading volume has shown that the token is not receiving the critical attention and interest required to sustain a bull run. The recent crackdown on several tokens by the United States Securities and Exchange Commission (SEC) may have played a pivotal part in this reclining interest.
Investors now have Fear, Uncertainty, and Doubt (FUD) about Monero and other privacy tokens in general. Sadly, this has been the case for many other tokens especially those listed on the SEC lawsuit against leading cryptocurrency exchange Binance.
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