Ripple is going “all-in” for CBDC and I congratulate them for their support and efforts building CBDCs.
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Ripple is infamous because it fought and beat the SEC this summer when its XRP tokens were declared not securities. Just to add insult, the SEC’s appeal was denied!
Ripple is wise in seeing CBDC as a means of achieving the benefits of tokenization which will unlock “the internet of value.”
👉TAKEAWAYS:
Ripple’s support for CBDC is welcome, even if some in the industry cringe at a crypto company supporting and building CBDC.
I hope Ripple’s support can help extend an olive branch to the crypto community, which generally opposes CBDC.
Ripple’s CBDC strategy is simply GENIUS! First it helped smaller nations like Palau, Bhutan, Columbia, and Monegenegro develop CBDC pilots and is now working with major players like Hong Kong.
Ripple correctly acknowledges that “CBDCs are needed to support the most significant positive impacts of asset tokenization.”
Ripple also gets the scale that CBDC and stablecoins can deliver saying that “they have the potential to help digitize entire economies.”
Major Barriers to CBDC Adoption Include:
Central banks must reconcile control (centralization) vs. innovation.
Confirming digital identities
Supporting offline access
Adding interoperability (This is where Ripple would wants to use XRP!)
Ensuring robust security
Global regulatory clarity.
👊STRAIGHT TALK👊
Ripple building CBDCs is a real shake-up for the normally staid world of central banks, and some see them as interlopers.
I welcome them and think their consulting team’s crypto background and ability to tap into Ripple’s “XRP Ledger” blockchain presents their clients with a unique capability.
What is important to note is that the CBDC solutions Ripple develops do not use its cryptocurrency XRP.
Ripple’s marketing strategy has been nothing short of genius. Knowing that it couldn’t go after CBDCs in large or medium nations due to their crypto background, they went for the smallest nations where they could make an impact.
By starting small, they built credibility and worked their way up to participating in Hong Kong’s CBDC investigations.
Some will say that Ripple sees an opening for its XRP token as a transfer currency between CBDCs, and it is only doing this to further XRP. That is unlikely, as the CBDC transfer mechanisms being built now, like mBridge, couldn’t use XRP and never will.
Could XRP be used for other smaller CBDC transfers? Unlikely, the US would go ballistic!
I think Ripple is doing its best to be a mainstream blockchain service company, and if it can sell XRP Ledger, a very fast and tested blockchain, that’s enough.
I don’t see deeper ulterior motives, and I think they will make real contributions to CBDCs!
Welcome, Ripple, and thanks for supporting CBDC! If you could get some others in crypto to support CBDC we’d all be appreciative!
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