• ECB’s policymaker Olli Rehn announced that the investigation phase for the digital euro will be completed in October 2023. 
  • Proponents argue that a CBDC has the potential to derail payment currencies like USDT and Ripple’s XRP. 
  • XRP price outlook remains bearish, analysts predict decline to the $0.25 level. 

Ripple’s XRP is a leading altcoin used for cross-border payment settlement. The rise of central bank digital currencies (CBDC) and a potential ban on stablecoins, poses a risk for XRP’s adoption and utility. 

Also read: SEC v. Ripple update: Regulator argues Hinman’s speech is not relevant to the lawsuit

Digital Euro decision will be out by October 2023

Olli Rehn, a Finnish European Central Bank policymaker, said in a speech that the investigation phase for a possible digital euro currency is expected to be concluded in October 2023. After the investigation, the ECB will decide whether to embark on the quest to develop a digital euro or not. Rehn’s speech has been released on Wednesday. 

Olli Rehn, Finnish ECB Policymaker

Olli Rehn, Finnish ECB Policymaker

The European Central Bank published its key objectives for the digital euro in a blog post authored by ECB President Christine Lagarde and executive board member Fabio Panetta. The document laid out basic considerations for a digital euro meant for public use. 

The blog post reads,

The digital euro can only be successful if it becomes part of the everyday lives of Europeans. It must add value compared with existing solutions.

Digital Euro Utility

Digital euro utility

The digital euro investigation phase will be wrapped up in the autumn of 2023. The ECB has a reticent stand on its findings and details of the experiment apart from declaring the end of the investigation. The central bank has mentioned how likely it is to increase the proposed amount of digital euros in circulation to 1.5 trillion euros. This would help control the negative effects on financial stability. 

Potential ban on USD Tether USDT in the European Union?

The European Union’s Markets in Crypto-Assets Legislation is likely to announce an effective ban on dollar-pegged stablecoins USD Tether (USDT) and USDC. Lobbyists have warned crypto investors the consequences of a ban on stablecoins could have negative consequences on the ecosystem. 

How the Digital Euro poses a threat to XRP

Central bank digital currencies like the digital euro are expected to be used for payment settlement. The ECB is likely to drive large scale adoption of the digital euro based on its blog post. Therefore, a CBDC poses tough competition to cryptocurrencies like XRP used for cross-border payment settlements by Ripple.

Ripple Partnerships

Ripple Partnerships

Ripple’s vendors and partners are large-scale financial institutions, but the adoption of CBDCs like digital euro could slow down their expansion plans. A decline in adoption and utility of XRP could negatively impact the altcoin’s price. 

Analysts predict decline in XRP price

Analysts revealed a bearish outlook on XRP. Crypto analysts at InvestingCube believe the XRP price chart shows signs of a prolonged bearish accumulation phase. A breakout to the $0.30-$0.40 level could invalidate the bearish thesis and result in a massive price rally. 

XRP-USDT price chart

XRP-USDT price chart

However, XRP price is trading in the middle of the range, awaiting Bitcoin’s next move. The altcoin is likely to retest its range lows at the $0.29 level. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.

More Bitcoin News
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins. 

More Bitcoin News
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.

More Solana News
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP