One low-cap altcoin surged by more than 27% this week amid its newly announced involvement in a central bank digital currency (CBDC) project.

Coti (COTI) is a privacy-focused layer-2 network built on Ethereum (ETH).

Coti announced on Tuesday that it will take part in the Central Bank of Israel’s CBDC project alongside the payments giant PayPal and the digital asset operations firm Fireblocks.

“CBDCs have been identified by COTI as a key use case for its privacy-centric upcoming infrastructure and we are thrilled to announce this milestone. The Bank of Israel has been exploring CBDCs since 2018 and will now explore with COTI the implementation and use of advanced functionalities and ways to build an ecosystem around its CBDC.

As the only blockchain network selected to take part, COTI will bring its expertise to bear on design considerations. COTI’s privacy-focused L2 blockchain offers advanced features to hold and securely transact with CBDCs.”

COTI is also up nearly 3% in the past 24 hours. However, despite its considerable gains this week, COTI still remains more than 82% down from its all-time high of $0.6686, which it set back in 2021.

Generated Image: Midjourney