Ripple: XRP is predestined as a neutral bridge asset between CDBCs

The RippleNet and XRP are predestined to create a “network-of-networks” that will enhance the benefits of individual CBDCs.

According to Ripple, open protocols and the creation of standards are a basic prerequisite for CBDCs to be interoperable worldwide.

In a new blog post entitled “Interoperability Will Determine CBDC Winners and Losers”, Ripple discussed the need for a networked system of Central Bank Digital Currencies (CBDCs).

As the San Francisco-based company explained, the emergence of the COVID-19 pandemic has encouraged the use of contactless payments instead of cash.

The pandemic has changed the perspective of central banks around the world on issuing digital central bank currencies.

 According to Ripple, for CBDCs it is now a question of when, not whether. On the other hand, central banks’ positions on digital assets in general have also shifted, according to James Wallis, Vice President Global Sales Strategy & Operations at Ripple:

 Governments that once viewed digital assets as a threat, now see how companies like Ripple are working closely with traditional financial institutions to develop efficient, innovative global payment solutions that directly benefit businesses and individuals.

While countries like China are expected to go into production with their CDBCs this year and focus on domestic use cases, a world of CDBCs will require networking as a result of the global economy, Wallis said:

 While focusing on domestic use cases is understandable for individual countries, we live in an increasingly interconnected global economy.

 It will be critical to bridge the gaps between the various CBDC initiatives with existing payment systems as well as other digital currencies to ensure they are successful on a global scale.

Read the full topic at

https://www.crypto-news-flash.com/ripple-xrp-is-predestined-as-a-neutral-bridge-asset-between-cdbcs/