Bank of France mentions Ripple in report on CBDC; XRP/USD attempts short-term recovery

• Bank of France mentioned that Ripple’s blockchain may be used for the purposes of CBDC.
• XRP/USD recovered from the recent low, but it is still below critical $0.2800.

XRP/USD is changing hands at $0.2730 at the time of writing. The third-largest digital asset has recovered from the intraday low of $0.2672 and stayed mostly unchanged since this time on Monday. Ripple’s current market value amounts to $11.9 billion, while an average daily trading volume is registered at 2.1 billion.

Bank of France mentions Ripple

The French central bank mentioned Ripple’s XRP in the latest report on central bank-issued digital currencies (CBDC). Crypto Twitter user XRPcryptowolf (@XRPcryptowolf) cited the paragraph from the document published by the French regulator. It says that CBDC may be used on existing public blockchains that allow integrations of other crypto assets.

Units issued on the wholesale CBDC’s native blockchain could be transferred to other blockchains. Since the attributes of a unit of the wholesale CBDC (file representing the currency unit, keys enabling use) may be integrated into a crypto asset circulating on another blockchain, which is possible on Ethereum and Ripple, for example, it would then become possible to use the unit on this blockchain.

European authorities along with other global central banks are considering the idea of digitalizing their existing fiat money, thus the possibility that Ripple’s technology may be used for that purpose sound exiting for XRP supporters.

XRP/USD: Technical picture adds uncertainty

On the intraday charts, XRP/USD tries to settle above the local resistance level created by SMA100 1-hour. The next bullish barrier is created by a combination of SMA50 1-hour and the upper line of 1-hour Bollinger Band at $0.2750. It is closely followed by SMA100-1-hour at $0.2770. However, a sustainable move above $0.2700 is needed to improve the technical picture and allow for an extended recovery.

On the downside, the local support is created by the middle line of 1-hour Bollinger Band on approach to $0.2700. Once it is out of the way, the sell-off is likely to gain traction with the next focus on the intraday low of $0.2672 and February 8 low at $0.2638.

XRP/USD 1-hour chart