Ripple Is Testing A XRP Ledger That Supports CBDC
Despite its many lawsuits, Ripple, the blockchain payment firm, isn’t relenting in its efforts to switch people from traditional banking models to crypto-based and blockchain system. In a recent announcement, the company claims to have completed the test of its XRP ledger (including hiring new executives) to aid central banks’ digital currencies (CBDCs) proposal.
Ripple Continues to Focus On Its Core Objectives
A recent post on Ripple’s blog states that this system will be available as central banks in all regions of the globe seek to establish several digital currency ventures. According to Ripple, its new CBDC-based variation of its XRP “allows central banks to issue and control digital currencies in a secured, monitored and adaptable manner.”
As per the blog, “we are in discussion with central banks globally to understand their exact purposes and evaluate ways the CBDC private ledger could help them accomplish those purposes faster.”
The post continued, “we are convinced that this method will provide an easy pathway for central banks to develop and control a centralized digital currency. A side benefit of that is that it will enhance the central banks’ worth with their partners and their gazillion number of users.”
This announcement is coming at a time when Ripple continues to do a legal battle with the United States SEC on the securitization of XRP tokens and illicit XRP token sales. Close to 90% of central banks are set to explore a kind of autonomous-based cryptocurrency. Thus, there will be the emergence of new central bank digital currencies (CBDC). Each of them will have specific goals determined by the country’s opportunities and the actual market challenges. Consequently, there will be independent technologies with unique implementations, and there will be several CBDC solutions that will become available to everyone.
Towing the CBDC Path
CBDC continues to be the subject of discussion among financial institutions as they consider it to be the secret to government’s regulation of the cryptocurrency industry. While Ripple continues to look for the best way to establish its position as global central banks’ go-to company for digital currency initiatives, other companies are looking to do likewise.
Paypal is one such company. Its CEO, Dan Schulman, told investors during their day that the payment behemoth is putting all efforts in place to become global CBDC’s digital wallet. He added, “PayPal is the most suitable option for government and central banks to diversify CBDC such that lots of people can utilize this digital economy. Hence, we are focusing on this new business area, and we already have some plans in place which we will execute soon.”
Firms in China are also interested in this novel project of supporting several CBDCs across all the continents and countries. China’s first blockchain conglomerate, the blockchain service network (BSN), has disclosed its plans to create a global digital payment network (UDPN) that links various private and public blockchains in its international network.
While the innovation is no doubt noble, this infrastructure must overcome the significant challenge of interoperability. It’s hoped that Ripple and other blockchain initiatives will develop adequate solutions to tackle these challenges.
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