- A Ripple executive believes that XRP and XLM will act as utility tokens for world central banks with Middle Eastern players already committing.
- The Stellar blockchain and XRP Ledger have been working on building infrastructure to be utilized by central banks in tokenizations and issuance of digital assets such as fiat.
An anonymous Ripple executive is said to have compared XRP and XLM to the ‘Pepsi and CocaCola’ of central bank utility. Technical analyst Francis Hunt (The Market Sniper), speaking in an interview with Versan and Vandell Aljarrah in the latest episode of the Black Swan Capitalist podcast, revealed that a Ripple executive had revealed that both XRP and XLM would play a significant role in the upcoming financial revolution, likening them to Pepsi and Coca-Cola in the soda industry.
Don't miss this game-changing revolution in finance. pic.twitter.com/RuGuUJuVZA
— Collin Brown (@CollinBrownXRP) November 20, 2023
Interestingly, both Ripple and Stellar Lumens share a similar foundation and architecture. Jed McCaleb was a co-founder of Ripple before leaving and co-founding the Stellar network in 2014. This explains a lot of the similarities in the architecture of the two networks. It further reveals why XLM has mirrored XRP in recent months.
In part, because the business the two networks target is the same. Both seek to expand financial inclusion by facilitating cross-border payments at cost-effective and fast means. Ripple targets institutions, while Stellar looks to the retail market. In addition, if XRP gains the legal clarity that it seeks, this would inherently clear XLM. The U.S. Securities and Exchange Commission has charged Ripple for offering unregistered tokens in the form of XRP tokens. If Ripple wins the case, categorizing XRP as tokens and not securities, it will not only set a precedent for the industry but more so for XLM.
Asked whether the two technologies will be the foundations of the financial revolution, the analyst revealed that this was not only his belief but also one shared by a top Ripple executive. He further revealed that the outspoken executive had insider information about ongoing discussions with Middle Eastern players;
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He mentioned that one or two of the Middle Eastern players, some that were committed potentially to the one, automatically said that other of the nation states that are typically a little bit adverse, would go with the other one,
As CNF has reported previously, Ripple has built a platform dedicated to helping central banks, governments, and financial institutions around the world in the issuance of CBDCs and stablecoins. Demand for this has been evident with Ripple working with more than 20 central banks in the development and issuance of their tokens.
Stellar on the other hand has also seen its platform utilized by Australia and Brazil to develop their versions of a CBDC. With these ongoing developments, the two networks will likely dominate the financial landscape as much as Pepsi and Coca-Cola which have taken a huge share of the beverage industry.