Ripple Is About To Tackle The $9 Trillion Dollar CBDC Market• December 4, 2022 5:56 pm • Comments
Ripple is focusing on its XRP Ledger solution so that it can support stable coins and central bank digital currencies in the near future.
The reason why it is focusing its efforts in this area is because it believes that the market of central bank digital currencies will soon grow to be a multi-trillion dollar market.
After all, most investors and industry experts believe that the traditional central banks will have to find some sort of balance between maintaining currency control while taking advantage of the new blockchain technologies that are emerging.
As of right now, Ripple (XRP) is the only solution that provides an out-of-the-box platform for the creation of CBDCs which positions it to be the solution that could dominate this growing market.
Ripple to tackle $9-trillion dollar market and could serve 50% of world’s population.
— CBDC WORLD 🌍 (@CBDCWORLD) December 4, 2022
San Francisco-based blockchain startup Ripple has already been an active player in the FinTech space over the last few years.
However, the company is stepping up its efforts to cater to the trillion-dollar market of central bank digital currencies (CBDCs).
As we know, central banks across the world have already started experimenting with CBDCs. This includes some of the top economies like the European Union, China, India, Australia, and others. On the other hand, the United States has been a bit slow and is evaluating the financial as well as legal liabilities of having a Digital Dollar.
Blockchain startup Ripple has released its own CBDC whitepaper offering a complete framework for implementing CBDCs.
It also provides detailed guidance for ensuring the global interoperability of different CBDCs.
There are already multiple reasons in a report that explains why Ripple’s CBDC solution may be the most suited.
For example, it achieves certain requirements such as providing security, reliability, and interoperability which are all needed to support a CBDC.
Ripple’s ODL service is also already in high demand by many financial institutions around the world and companies in America are also interested as well.
The only issue is that the current SEC lawsuit prevents that from happening in America, but companies like Bank of America have still expressed interest in Ripple’s ODL products nevertheless.
— Antony Welfare (@AntonyWelfare) December 4, 2022
However, the blockchain startup has been facing some criticism since many crypto enthusiasts believe that CBDCs will give central banks greater control over users’ money. In its whitepaper, Ripple noted that central banks must balance the desire for transformation with the need to maintain stability on a global scale.
Ripple said that central banks will have to strike a good balance between centralization on one hand and innovation on the other. The blockchain startup added:
If Central Banks do not enable the broad access, enhanced native functionality and interoperability that will allow their currencies to be adaptive and scalable, they risk losing control of the infrastructure for global digitized services.
Ripple added that central banks will also need to offer the non-bank partners greater access to core payments systems and infrastructure than they currently offer.
For faster cross-border transactions, “It’s critical that Central Banks start working together to resolve these issues now, rather than leaving a bigger problem to fix further down the line,” added Ripple.
The masses will use #CBDC’s as their main form of payment.
— The Ripple Effect (@therippl3effect) December 4, 2022
Join the conversation!
We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.