- COTI’s selection by the ECB highlights its growing role in CBDC privacy innovation
- Digital euro project prioritizes user privacy with COTI’s on-chain Garbled Circuits tech
- COTI price breakout and volume surge indicate strong bullish sentiment after ECB news
COTI, a layer-2 privacy protocol built on Ethereum, has been selected to participate in the European Central Bank’s digital euro project. The initiative marks a major step toward modernizing the European Union’s payment infrastructure while preserving user privacy.
The collaboration recognizes COTI’s rising influence in central bank digital currency (CBDC) development. After a successful pilot with the Bank of Israel on the digital shekel, COTI now takes its privacy-centered approach to one of the most ambitious digital currency efforts in Europe.
Pushing Privacy to the Forefront of CBDC Development
The ECB’s project, aiming for a 2026 rollout of the digital euro, focuses on integrating privacy into everyday retail transactions. COTI will provide its conditional payments framework, which ensures each transaction verifies asset ownership before proceeding. This privacy layer, built using Soda Labs’ Garbled Circuits, operates fully on-chain, giving users confidentiality without compromising transparency.
Significantly, this model offers a unique solution for governments seeking privacy-complaint yet transparent financial infrastructure. In Europe’s regulatory environment, balancing innovation with privacy laws like GDPR is complex. Hence, COTI’s solution could offer a template for other blockchain-based financial systems.
The initiative arrives at a time when concerns about monetary sovereignty are rising across the continent. With the U.S. backing dollar-based stablecoins more openly, European leaders are feeling pressure to accelerate the digital euro rollout. A senior French official recently warned that foreign-backed stablecoins could erode the EU’s monetary authority.
COTI Market Signals Turn Bullish Following Announcement
COTI’s market performance reacted positively to the announcement. At the time of writing, its price stands at $0.07695, showing a 4.51% gain in 24 hours. The trading volume surged over 62%, hitting $22.8 million, signaling renewed investor interest.
On the technical front, the price broke out late in the session, clearing resistance at $0.076. This move was backed by strong volume, hinting at growing bullish momentum. Support levels now rest at $0.0734 and $0.0720, while immediate resistance sits around $0.078.
The MACD shows a recent bullish crossover, and the RSI remains neutral at 53.44. Consequently, there is room for continued upside unless strong resistance halts progress.
