- Ripple works with more than two dozen central bankers to integrate their digital currencies onto its CBDC platform. Its confirmed partners include Palau and Colombia.
- Ripple’s CBDC is a leading platform for digital currencies decentralised. It offers interoperability as well as fast transaction speeds, low fees, and an energy-efficient system.
CBDCs, and tokenisation have been the two blockchain applications that all stakeholders, including crypto enthusiasts and global regulators are rallying behind. 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 issuing digital currencies and tokens.
Most central banks, understandably, are reluctant to use their own national currencies in decentralised infrastructure. As the central bank is responsible for maintaining monetary security and supporting millions of economies, they must take caution when implementing new technology.
As technology advances in the sector, central banks have begun to explore DLT. The XRP Ledger has been a popular choice.
Ripple is hinted At the moment, it is working with 20 central banks in order to investigate how they can deploy their CBDCs onto its platform. So far, only four have confirmed this relationship—Palau, Colombia, Bhutan, Georgia and Montenegro.
Even though the development in these countries is still at an early stage, it still represents a significant event. 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. Over 51 million people live in the Latin American nation, and they would all be able to use XRPL for their daily payments.
CBDCs may be XRP Ledger’s best shot at mainstream adoption
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 volume dropped by 41% in Q1, while XRPL DeFi decreased by 10%.
CBDCs provide a crucial lifeline for XRP Ledger. With digital currencies like these, XRPL is able to leapfrog Ethereum and Solana whose ecosystems are centered around crypto-use cases such as DeFi and reach out to ordinary people that just want to solve their problems and do not care about technology.
According to The Atlantic Council, 134 countries that account for 98% global economic activity are looking into 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.
In the last 24 hours, XRP has barely changed its price from $0.5174.
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Source: www.crypto-news-flash.com