Search ForexCrunch
  • 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’ 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

XTZ/USD daily chart

Despite the news, the price has remained unaffected by it. XTZ/USD 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.