- Ripple‘a budding CBDC ecosystem might be a target for the U.S. SEC.
- Ripple still has public support, as prominent personalities predict a favorable summary judgement for Ripple.
The SEC vs Ripple lawsuit has sparked an ongoing debate about the various reasons why the SEC might be after Ripple. One possibility might be linked to Ripple’s now functional CBDC platform, which gives the Ripple ecosystem a massive hedge over many central banks.
Although the SEC didn’t mention that Ripple’s connection to CBDCs was part of the reasons for filing a lawsuit against it, it will come as no surprise if Ripple’s CBDC platform is a threat to other central banks.
Raoul Pal, Former Goldman Sachs executive, makes a case for Ripple’s relevance in the industry, saying that Ripple has built a deep connection with global governments.
“I think if you lift the legal issue, the probability is that the value of the chain increases significantly and as the world moves towards central bank digital currencies, I think the XRP Network is going to be somewhere at the center of all of that, I know it’s not the flavor of the day for a lot of people but I think it’s a big player, it’s a real player and a real niche.” Pal explained.
Ripple’s private XRP ledger is designed for the deployment of central bank digital currencies. The platform offers management, transacting, mining, and destroying of CBDCs.
Ripple has been working with central banks of different countries looking to launch a CBDC since 2021. Over the years, Ripple has worked with the Republic of Palau, Bhutan and the UK as they set out to launch their own CBDC.
It bears mentioning that Ripple is now working with Digital Dollar Project (DDP), the non-profit organization behind the making of the U.S. digital dollar. The organization said it will be working with Ripple to launch a technical Sandbox Program to facilitate the exploration of a U.S. CBDC.
Ripple’s ongoing lawsuit predicted to come to a close soon
The ongoing SEC vs Ripple lawsuit has taken a toll on the price of the XRP, and Ripple supporters have long awaited a final verdict from the judge.
Back in December, both Ripple and SEC filed for an extension of a joint motion to January 13th, 2023. As the public awaits summary judgment, attorney John E Deaton maintains optimism in Ripple’s possibility to win the case.
Ben Armstrong, the creator of Bitboy crypto is predicting that the case will come to an end this year. He also sees Gary Gensler, the chairman of the U.S. securities and exchange commission sending in his resignation.
2023: The year the $XRP case ends and the Ripple curse is broken.
Also the year @GaryGensler is forced to resign from the @SECGov
— Ben Armstrong (@Bitboy_Crypto) January 1, 2023
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If the court verdict favors XRP, attorneys say that other altcoins will benefit from it. The price of XRP is also bound to swell as a result. XRP is priced at $0.34 at report time, after sustaining losses of 0.33% within the last 1-hour.