- Asheesh Birla is convinced that local CBDC’s can be moved easily and quickly on RippleNet.
- XRP can serve as a bridge currency to process cross-border payments in real-time at low cost.
The race to launch a central bank-based digital currency (CBDC) is in full swing. Triggered by the announcement of the launch of Facebook Libra, more and more countries around the world are investigating a CBDC, while the Facebook project has stalled. Thus, according to a new report, Facebook Libra will launch as a USD-based stablecoin in January 2021 without another basket of currencies.
The current global leader is China, which according to experts is at least 3 years ahead of the world, as the digital yuan is already being tested in numerous restaurants such as Starbucks and other well-known partners. As Crypto News Flash reported, the view of governments worldwide towards so-called CBDC’s (Central Bank Digital Currencies) has fundamentally changed, as the need for networking as a result of the global economy is taking place in the financial system.
This creates many financial venues that need to move large amounts of fresh capital quickly and cheaply. However, there is still a lack of the appropriate infrastructure to move digital assets such as stablecoins, which are issued as CBDCs, across national borders quickly and cheaply. Asheesh Birla, General Manager of RippleNet, said in a new podcast from Lend Academy that “local CBDC’s” could be sent perfectly over the RippleNet:
I think, RippleNet can actually take these local CBDCs and bridge them to make money move more efficiently.
Several reports also emphasize that Ripple’s payment technologies are perfectly suited to send CBDC’s quickly and cheaply, using XRP as a bridge currency, from one end of the world to the other at low cost. The Group of Thirty, a leading independent panel of prominent financial industry figures, recently stated that Ripple has great potential and could redefine the current financial landscape:
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 in a report that both Ripple (XRP) and Ethereum would be capable of driving the digital euro. Although the European Central Bank has been conducting research on the digital euro for some time and has already set up a task force for this purpose, the progress made by this body has so far been unsatisfactory. In particular, the leading banking association in Germany has been calling for the development of a digital euro since the beginning of the year, so that in the long term we do not lose touch with the financial system of tomorrow and thus become too dependent on China or America.
“Strong demand for Ripple’s “Line of Credit
According to Birla, the needs of companies now go far beyond remittance services. Especially among Fintech companies, there is a great demand for a platform that can provide loans quickly and easily without major detours. That is why the demand for Ripple’s new product “Line of Credit” has almost exploded within the last few weeks, as Birla revealed:
I don’t think you have the right kind of financial infrastructure to support those kinds of companies so that’s something that I’m really looking forward to in terms of innovating and building for in the upcoming year.
Line of Credit targets Fintech’s and SME’s to raise capital on demand to enable large scale cross-border payments to be made using the XRP digital asset. The product is still in the beta phase, but the demand for it is already high.