Authorities rush to enact new fast-paced legislative action in the digital currency industry amid the FTX debacle. The fall in the price of Ether has been linked to a general decline that has led to a shocking 39.90% plunge in the cost of trading Ether over the last month.
The price of Ether opened the daily trading session at a low of $1,177 against the US dollar and is currently trading 2% higher than it was a day ago. Total Value Lock-in (TVL) in Ether-based smart contracts on the Decentralised Finance (DeFi) platform has also fallen by 4.49% in 24 hours.
The ETH price is currently trading below $1,250 against the US dollar and risks further losses if it falls below a significant area. The second largest cryptocurrency fell 5.3% last week to a market cap of $843.35 billion and 24-hour trading volume of $44.7 million.
ETH price rises as Visa brings automatic payments to ethereum
Catherine Gu, Head of Central Banking Digital Currency (CBDC) and Protocols at Visa, has put forward a proposal to introduce automatic payments for Ether accounts. To implement this innovation, Visa plans to use Account Abstraction (AA).
This move is part of Visa’s many attempts to build its presence in the crypto space, and now the payment services company is doubling down on the same goal. As such, Visa will use the Ethernet blockchain in its plans to introduce its revolutionary automated crypto payment method.
Ethernet co-founder Vitalik Buterin has been working on a proposal for account abstraction as the Ethernet Improvement Proposal (EIP) since as early as 2015. The concept entails combining Ether wallets with smart contracts so that they exist in a single account.
If this is successful, self-hosted wallets that operate user accounts will be able to run as smart contracts. This would be essential for establishing automated payments, as the account abstraction would eliminate the need to sign each transaction individually.
Given that Ethernet has not yet implemented the product, Visa will run the solution on StarkNet (a layer 2 blockchain still running on Ethernet), thereby increasing throughput. In terms of the proposal, the account model using StarkNet allows Visa to implement a delegatable account solution and in the process allow automated payments to be made to self-hosted wallets.