- Ripple’s Vice President for CBDC Engagements, James Wallis, underscores the transformative potential of Central Bank Digital Currencies (CBDCs) in advancing global financial inclusion.
- Wallis identifies low incomes and a lack of financial institution relationships as key factors contributing to financial exclusion and discusses how CBDCs can provide cost-effective, accessible financial services.
In a brief video, James Wallis, Ripple’s Vice President for CBDC Engagements, emphasized the potential of Central Bank Digital Currencies (CBDCs) to advance financial inclusion. Wallis defined financial inclusion as the provision of financial services to a global population, specifically targeting those with low incomes and no prior engagement with financial institutions.
He outlined two primary factors contributing to financial exclusion: low incomes and a lack of existing relationships with financial institutions, leading to the absence of a credit history. Addressing these challenges, Wallis suggested that traditional banks, often profit-driven entities with shareholders, find it difficult to serve individuals with minimal resources.
Oceania-based country Palau also achieved a major milestone by recording its first domestic CBDC transactions over Ripple’s popular XRP Ledger. Here’s proof of how Palau achieves transaction settlements in less than 1 second over XRPL.
Experience blazing-fast XRPL transactions, taking just 1 second, even with a shaky internet connection. 🌐💰
— Collin Brown (@CollinBrownXRP) November 19, 2023
The XRP Ledger (XRPL), an open-source blockchain that is decentralized and permissionless, has achieved a significant milestone by successfully concluding its 84 millionth ledger. The noteworthy accomplishment was initially reported by XRPScan, a platform dedicated to exploring the XRP Ledger and conducting network analysis. At the time of reporting, the ledger count for XRP stood at 84,019,694. This achievement is regarded as indicative of substantial growth and notable adoption within the smart contract network.
CBDCs Ensure Financial Inclusivity
Wallis contended that Central Bank Digital Currencies (CBDCs) offer a solution by being cost-effective, enabling the provision of financial services at a significantly reduced cost compared to traditional methods. CBDCs also streamline payment options, providing opportunities to establish credit, even without a pre-existing relationship with a financial institution.
This facilitates the creation of credit histories for individuals, empowering them to borrow money and stimulate business growth. Wallis concluded that CBDCs represent a transformative innovation addressing the global challenges of financial inclusion.
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Ripple is actively collaborating with over 20 central banks worldwide on CBDC initiatives and has emerged as the technology partner for piloting the second stage of the CBDC project in the Republic of Georgia. Live CBDC collaborations with Ripple are also underway in countries such as Bhutan, Palau, Montenegro, Colombia, and Hong Kong.
In light of this significant shift, the pseudonymous cryptocurrency analyst Bitforcoinz has put forth a striking prediction, suggesting that Ripple’s integration with Central Bank Digital Currencies (CBDCs) could propel the price of XRP to unprecedented levels. According to Bitforcoinz’s forecast, XRP has the potential to reach an astonishing $10,000 if it establishes itself as the driving force behind CBDCs in nations exploring digital currencies.
XRP was designed to settle CBDCs! There are not enough XRP out there to bridge all the money at a price of $10. XRP at $10,000 is a logical conclusion.
Bitforcoinz tweeted, underscoring the evident synergy between XRP and the rapidly evolving CBDC landscape.