Ripple Executive Reveals Company Is In Talks With Over 20 Central Banks• March 1, 2023 10:11 pm • Comments
It looks like Ripple is the leading crypto firm when it comes to the development and implementation of central bank digital currencies (CBDCs).
Brooks Entwistle, managing director of APAC and MENA at Ripple, just revealed that the company is discussions with central banks in over 20 different countries regarding CBDCs.
This is quite a positive fact considering that many would have expected that there would be a lot of regulatory hurdles for Ripple to overcome, but most are welcoming discussion for this topic.
As Ripple had predicted, the demand and interest for CBDCs is continuing to grow and the company has positioned itself to be the leading solutions provider for those who are interested.
If more central banks enter partnerships with the company to use the XRPL to power these CBDC solutions, it would be an extremely bullish scenario for its native token XRP.
So this senior official for the BOE's concern is ultimately scalability on a large scale. Well, take a look at Ripple's vision regarding CBDC private ledgers, TPS and scaling potential for Central Banks in the photo 🙂https://t.co/bhsauYbXZL pic.twitter.com/V54d9CroIA
— Tee's Crypto Spot (@TeesCryptoSpot) March 1, 2023
As Bitcoinist reported, CBDCs are a key focus for Ripple in 2023 and Entwistle reaffirmed this, presenting his company as a solution provider to which central banks and authorities can turn. “There are 200-plus countries out there. There are a lot of central banks and they have different needs and there are different parts of this journey,” Entwistle said.
While some countries are well advanced, the digital yuan in China and others, there are many emerging markets that are smaller, that have fewer resources, that have other issues where Ripple can help an important part. In this context, Entwistle revealed that the fintech is already in dialogue with more than 20 central banks:
So, we are in dialogue with not ten, not twenty, but a bunch more central banks around the world on these discussions.
The Ripple executive cited the already well-known projects with Bhutan and Palau as examples. Regarding regulatory headwinds in the U.S., Entwistle revealed that this is why Ripple is focusing on the international market, where the company hired most of its 300 new employees last year.
Based on this, it is clear that Ripple’s success is no longer dependent on the US market as the data shows that the majority of the firm’s business is in international regions.
If Ripple is in discussions with over 20 central banks all from different countries, there is a possibility in the long term future that Ripple can establish a global cross-border payments network.
This would allow different CBDCs to be exchanged with each other within the network and would truly create a global blockchain network that solves all of the issues that cross-border transactions still have today.
In essence, it could possibly replace traditional financial systems like SWIFT, but it will require all central banks to actually agree to this vision.
And the company has acknowledged that a feat like this would not happen overnight.
— Ajay (everything hindi) (@EverythingAjay) March 1, 2023
That means, to your point on not just issuing white papers or responding to things very quietly in the background, we need to be hosting events, having our customer conferences, being on standby for when someone does call and says, ‘Listen, we could use an explanation about CBDCs or the like.’
Asked about the fierce competition in the cross-border payments space, the Ripple senior vice president explained that cross-border flow of value is one of “the last great unsolved financial problems or puzzles in the world.”
To solve this, it requires a global network.
And Ripple can provide this with its RippleNet. Entwistle divulged that the technology is now in more than 70 countries.
You can’t put together a 70-country network with hundreds of participants on it overnight. Yes, there are lots of great innovations across single corridors or within certain regions. […] We offer a holistic global solution […] So we just need to keep running hard and keep adding great people.
Ripple works with a number multitudes higher of 20 central banks globally for CBDC initiatives.
Is there any other startup that has even come close to what Ripple has achieved in the payments sector in the short time that they’ve achieved it?
— 🌋King Solomon🌋 (@IOV_OWL) March 2, 2023
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