- Ripple has confirmed that it is working with Palau, Colombia and nearly 20 central banks in order to integrate digital currency on the CBDC platform.
- Ripple’s CBDC is a leading platform for digital currencies decentralised. It offers interoperability as well as fast transaction speeds, low fees and high energy efficiency.
CBDCs (Crypto Digital Currency) and tokenisation, are two of the blockchain use cases which have garnered support from all stakeholder groups. This includes crypto enthusiasts as well as global giants and regulators. Ripple has a great opportunity to be a leader globally in these two areas, as the XRP Ledger is one of the most effective technologies for the issuance of digital currencies and tokens.
CBDC is a complex issue. It’s understandable that most central banks have reservations about using their currencies to fund decentralised systems. The central banks, which are responsible for monetary stability as well as supporting the economies of millions of individuals, must remain cautious when it comes to new technologies.
As technology advances in the sector, central banks have begun to explore DLT. The XRP Ledger has been a popular choice.
Ripple is hinted Working with approximately 20 central bank to examine the deployment of their CBDCs through its platform. So far, only four have confirmed this relationship—Palau, Colombia, Bhutan, Georgia and Montenegro.
Although the changes in these nations are in their early stages, they’re still significant. Take Colombia, for instance—the South American nation has the fourth-largest economy in the region, anchored on petroleum exports. The World Bank estimates that Colombia’s gross domestic product is $343 billion.
If the Banco de la República were to issue its CBDC on the XRP Ledger, the Ripple ecosystem would get a massive chunk of this massive economy on-chain. Latin America has more than 51 million residents, who would be able use XRPL as a daily payment method.
CBDCs may be the best shot at mainstream adoption for XRP Ledger
CBDCs may be the best way for XRP to gain mainstream acceptance. XRPL lags its competitors, such as Ethereum and Solana on DEXes, DeFis, and NFTs. It has a small ecosystem of dApps. As Crypto News Flash reportedXRPL DeFi Activity dropped 10% during Q1, and DEX Volume fell 41%.
CBDCs provide a crucial lifeline for XRP Ledger. The XRPL ecosystem can now leapfrog Ethereum and Solana whose eco-systems are centered around crypto use cases such as DeFi and reach ordinary people that don’t really care about technology.
The Atlantic Council reports that over 134 nations, representing 98% of global GDP, have explored CBDCs. It is the most effective way to reach the mass market. If XRPL could get ahead of the competition and be the leading player in the CBDC space, this would have the greatest impact on its XRP Token.
The price of XRP is $0.5174, and it has not changed much in the last day.
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Source: www.crypto-news-flash.com
