- As over 100 countries explore CBDCs, Ripple is offering central banks the most secure and cost-effective platform, which could bring billions into the XRPL world.
- While some are concerned that collaborating with central banks goes against the ethos of cryptocurrencies, CBDCs are a reality, and if they don’t launch on Ripple’s platform, they will launch elsewhere.
While the last decade has been the year of cryptos as Bitcoin, Ether, XRP and more shot into the limelight, the next decade will be defined by CBDCs. Central banks worldwide were shocked by how popular cryptos became, and stablecoin initiatives like Tether and the defunct Libra by Facebook have further disrupted the legacy financial system. Their response is a CBDC, and Ripple wants to be in a prime position to dominate this new era of digital finance.
The Ripple CBDC Platform offers a comprehensive all-in-one solution for minting and managing CBDCs. Central banks get their own private ledger to issue their digital currencies, all underpinned by the XRP Ledger. It caters to every stakeholder in the entire CBDC ecosystem, from the central banks, which are categorized as issuers, to commercial banks as operators. It also caters to the end user, offering them real-time transactions at a fraction of the cost of existing solutions.
The platform boasts proven stability, security, and resilience. This is critical for a digital currency designed to underpin a country’s economy. CBDCs are expected to be the digital equivalent of cash, and if cybercriminals infiltrate the system, they could cripple an entire nation. This makes stability and security two of the most critical qualities for any CBDC system.
Access and inclusion are just as important. Cash is accessible by any member of society, regardless of gender, economic status, race, or political views. A CBDC based on the XRPL would be just as accessible via standalone applications or embedded in existing banking and fintech apps.
To boost this access, interoperability becomes a crucial consideration, and XRPL’s CBDC protocol also excels on this metric. The protocol can be connected to domestic payment systems, core ledgers and CBDC systems from other jurisdictions, ensuring that users can access the digital currency anytime, anywhere.
And with the world moving towards sustainable systems and processes, XRPL’s carbon-neutral technology that consumes negligible energy is a godsend.
Can Ripple’s CBDC Focus Boost XRP to $10?
Digital currencies have become a global phenomenon. However, they have their limitations, and key among them is that regulators have been reluctant to accept them universally.
CBDCs are different. Developed by central banks and given legal tender status, CBDCs could have billions of users within months of launch. And if some of these CBDCs launch on XRPL, it would surpass Bitcoin, Ethereum and other blockchain networks in users and become a global leader.
Such an influx of users would be the boost that XRP needs to break new records.
XRP trades at $0.509 at press time, shedding 3.8% in the past week and a fifth of its value in the past month.
