- Monero’s role in the future of money might be understated due to CBDC privacy concerns.
- XMR bulls test the waters as liquidity starts flowing back in low volumes.
Something is brewing in the West and it might encourage more people to hold privacy coins such as Monero. America has been making its stance on crypto as clear as daylight. The West is certainly against crypto and here’s why that might lead to more demand for XMR.
Is your portfolio green? Check out the Monero Profit Calculator
Monero demand may soar in the coming days, especially with the upcoming CBDC rollout. According to the latest reports, China is entering its next CBDC adoption phase by paying its public servants using the CBDC version of the Yuan.
NEW: 🇨🇳 China to start paying ALL public servants with the ‘Digital Yuan’ CBDC in May within the city of Changshu.
CBDC is financial slavery‼️ pic.twitter.com/0ZGE2MahVg
— Radar🚨 (@RadarHits) April 23, 2023
Other countries including the U.S. are also in the process of rolling out their own CBDCs. Reports of strict measures including expiry dates on digital money have raised concerns, especially privacy-related ones.
This is because CBDCs will allow governments to have dangerously more control over people through easier monitoring of their spending. So what is Monero’s role in all this?
One of the biggest financial privacy and censorship fears is that CBDCs may give governments the power to silence anyone by blocking access to finances.
Monero’s privacy-centric nature makes it a highly attractive proposition for the masses especially when governments exercise draconian levels of control.
Can Monero bulls make a strong comeback?
A strong rally is plausible especially if the rest of the market enters recovery mode. Monero has so far maintained a substantial amount of the gains achieved since the start of 2023. It exchanged hands at $156.83, at press time.
Source: TradingView
XMR’s performance over the weekend underscores some bullish momentum. This is largely associated with the buying pressure building up after the bearish week that the markets delivered last week. But can it sustain the rally attempts?
Monero’s ability to deliver a strong bounce-back will largely depend on whether it can secure enough bullish volumes.
Its social dominance metric demonstrated a strong uptick in the last 24 hours, at press time. While that revived hopes of more investor attention, the volume observed at the same time was low, albeit a significant increase.
Source: Santiment
Furthermore, Monero’s market cap achieved a significant bounce back in the last three days. An indication that there was some accumulation in the last few days.
However, it dipped slightly in the past 24 hours, confirming that most potential buyers still sitting on the sidelines were waiting for more market clarity.
Source: Santiment
Realistic or not, here’s XMR’s market cap in BTC terms
Monero’s weekend performance confirms a slight increase in investors’ confidence. As demonstrated by the weighted sentiment metric which has been rising since 20 April.
