Ripple Lands Partnership With Digital Euro Think Tank

February 12, 2022 12:29 pm

Ripple has announced that the company will be getting involved with the Digital Euro Association community where they will provide their input and expertise to matters within the digital asset industry.

One of the specific things that they will focus on is assisting in the design of how central bank digital currencies should be created as many current solutions proposed lack the practical experience that Ripple has.

Ripple has been involved in such educational efforts before as well  where they provided expertise in CDBC efforts in countries like the United Kingdom, Bhutan, and the Republic of Palau.

CryptoBriefing reports:

Digital Euro Association Chairman Jonas Gross suggested that the partnership will largely involve the exchange of knowledge and joint educational efforts around digital currencies.

Gross stated that Ripple will help “extend the technological expertise of the DEA community,” noting that CBDC or government stablecoin projects increasingly need advice on technological design as they advance beyond the initial research stage.

Ripple VP of Central Bank Engagements James Wallis said that Ripple has “invested significantly in the CBDC world” and that it has 40 members working on CBDCs around the world.

He added that the partnership will “further develop [Ripple’s] work in the CBDC area.”

Today’s news appears to be unrelated to reports on Thursday that the European Commission could establish a framework for a digital Euro by late 2023.

The DEA is a think tank, while the European Commission is an executive branch of the EU government.

As such, Ripple and the DEA’s efforts will probably not lead directly to the creation of a digital Euro, unlike the Commission’s efforts.

Still, the partnership could influence the design of an eventual CBDC if the DEA think tank engages with policymakers.

Central bank digital currencies are increasingly gaining focus now in many regions around the world ever since the major increase of awareness of the crypto industry during last year’s crypto bull run in 2021.

Ripple’s token XRP is not considered a CDBC, but one of the major things that makes it attractive for institutions is the specific design of its blockchain that was exactly designed for such purposes.

As a result, the blockchain is often chosen as the blueprint for future design which is why many governments are reaching out to Ripple for assistance.

In the UK specifically, they collaborated with the Digital Pound Foundation which  is an organization founded to specifically research the viability of a CDBC for the UK.

With this new collaboration with the DEA, it is further solidifying Ripple’s status as a blockchain that is usable and scalable for large enterprises.

CryptoDaily shares further details:

According to a press release published by the Digital Euro Association, the partnership with Ripple will cover “joint educational efforts around digital currencies and knowledge exchange.”

Ripple says that it has been investing significant efforts to the growing number of CBDCs globally, disclosing that it currently has 40 developers and researchers working on CBDCs across its portfolio of partnerships.

The partnership is not directly linked to the European government’s own efforts at creating a digital Euro, given that it is a research-based and theoretical initiative.

However, with Ripple as as a partner and the Digital Euro Association working as a think tank, policy and regulation for a European CBDC will likely be influenced if indeed a digital Euro comes to fruition.

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