Cryptocurrencies’ race to launch a central bank-based currency (CBDC) is getting more intense. This is triggered by the announcement of Facebook Libra’s launch, and even more countries are investigating CBDC’s while the project is pending.
Thus, according to recent reports, Facebook Libra will be launched as a USD-based stablecoin once 2021 starts without other currencies.
According to experts, the current global leader, China, is currently three years ahead of the competition. A digital version of Yuan is already being used in several restaurants like Starbucks and other well-known partners.
The views of governments worldwide regarding these so-called CBDC’s (Central Bank Digital Currencies) have significantly changed since the need for financial networking resulting from the changing global economy is happening at the heart of the financial system.
This will create many financial avenues that will provide a means of moving large amounts of fresh capital cheaply and quickly. However, there is still a huge lack of appropriate infrastructure to move digital assets like stablecoins, which are insured as a CBDC, cheaply and quickly from one country to another.
Asheesh Birla, General Manager for RippleNet, said on Lend Academy’s new podcast that “local CBDC’s” could be transferred efficiently over the RippleNet:
“I think RippleNet can actually take these local CBDCs and bridge them to make money move more efficiently.”
Numerous reports also confirmed that Ripple’s payment technologies and methods are well suited for sending CBDC’s cheaply and quickly, using their cryptocurrency, XRP, as a bridge currency, from one country to the next at a very low cost.
The Group of Thirty, a leading independent panel of well-known financial industry figures, recently said that Ripple has great potential and could redefine the current financial world:
“It is possible that such a stablecoin could be valuable for cross-border payments, serving a function similar to that offered in the private sector by Ripple, a real-time gross settlement system, currency exchange, and remittance network whose digital currency, XRP, leapfrogs slow and expensive correspondent banking.”
The Bank of France also stated that both Ripple XRP and Ethereum would be capable of driving digital euros. At the same time, the European Central Bank has been conducting its own research on the digital euro for quite some time and has an existing task force for this purpose. The progress they made has thus far been unsatisfactory. The leading banking association operating in Germany has also been calling for the development of a digital euro since the year started, as not to lose touch with the financial system of tomorrow and become too dependent on China and America in the long run.