Following the announcement, COTI price surged over 12% on Wednesday to trade around $0.11, with its daily trading volume up more than 900 percent.
COTI, an Ethereum-based layer two (L2) network focused on enhancing privacy in every transaction, together with fourteen other fintech companies have been selected by the Bank of Israel to provide use cases for the Digital Shekel. COTI will be working alongside PayPal Israel, Fireblocks, Kima Finance, Qedit, and Shva, among others.
The digital Shekel challenge will kick off next month, with the selected firms providing the necessary rails for seamless adoption.
The Bank of Israel expects each firm to present its proposal and findings by the end of October to enable the development of a better national digital currency.
According to COTI CEO, Shahaf Bar-Geffen, the development of a digital Shekel will require paramount privacy protection in order to unlock competitive use cases.
“Leveraging the privacy provided by COTI’s garbled circuits technology, we are confident we can engineer a solution that will allow the concept of a digital Shekel to be transformed into a working reality,” Shahaf noted.
As Coinspeaker previously reported, the Bank of Israel has been experimenting with a digital Shekel token for the past few years as the use of physical fiat currency declines. The Bank of Israel selected several use cases to enable mass adoption of the digital Shekel. On the top list of the selected use cases is the connectivity between the digital Shekel with other payment systems and cash.
“The digital shekel’s potential to create innovation in the payments array will depend on the private sector’s ability to leverage the platform that the Bank of Israel will build, which is what makes this Challenge so important,” Andrew Abir, the deputy governor of Bank of Israel, noted.
Direct Impact on COTI Network
Following the announcement, COTI’s price surged more than 12 percent in the past 24 hours to hover around 11 cents on Wednesday. The small-cap altcoin, with a fully diluted valuation of about $225 million, saw its daily average traded volume surge nearly 10x to around $62 million at the time of this report.
Amid the ongoing crypto bullish outlook, fueled by the listing of spot Ethereum ETFs in the United States, COTI price surged over 32 percent in the last two weeks. According to a popular crypto analyst alias World Of Charts, COTI price is on the cusp of a new bullish wave after a successful breakout.
Breakout Has Already Confirmed With Strong Bullish Candle Expecting 2x Bullish Wave In Coming Days#Crypto #Coti https://t.co/3cFV5EuGtU pic.twitter.com/o5xHewXy4F
— World Of Charts (@WorldOfCharts1) July 24, 2024
From a technical standpoint, the COTI price must consistently close above the resistance/support level of around 12 cents to secure a rally toward its all-time high. Otherwise, the COTI price could retrace to the support level around $0.091 before rebounding towards its all-time high.
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