The post Ripple News: Federal Reserve Examines XRP’s Role in CBDCs appeared first on Coinpedia Fintech News
In a recent strategic move, the U.S. Federal Reserve has taken center stage, thanks to the rising prominence of XRP, now the third-largest cryptocurrency. The buzz around XRP’s role in shaping central bank digital currencies (CBDCs) has sparked a lively debate, promising to reshape the financial landscape.
Let’s dive into the fascinating discussion on how XRP could be a game-changer for CBDCs!
XRP in the Limelight
The latest talk of the town is that a public questionnaire with 22 inquiries has surfaced, aimed at demystifying CBDC adoption. The questionnaire explores risks, advantages, privacy concerns, and other critical aspects linked to central bank digital currencies. In this maze of discussions, XRP, Ripple, and the XRP Ledger (XRPL) emerge as key players, with respondents sharing diverse perspectives on the risks, benefits, and operational details of digital currencies like XRP.
A Clash of Ideas and Opinions
Various opinions echo in the digital space. James Hughes stresses the importance of ongoing communication with the cryptocurrency industry, cautioning against “illegal” currencies like Bitcoin, Ethereum (ETH), and XRP. Meanwhile, Ryan Hanna from the U.S. banking sector highlights the significance of offline capabilities in CBDCs, showcasing Ripple and XRPL as models offering robust offline functionality.
On the flip side, some voices, like crypto enthusiast James Ryckman, argued against the necessity of a U.S. CBDC for cross-border transactions, suggesting Ripple and XRP as suitable bridge solutions. Others, like Luke Keagy from the U.S. construction industry, proposed using XRPL to create a sidechain, fostering collaboration between the Federal Reserve’s currency and private sector innovation.
Also Read: Senator Warren’s Bill Signals Trouble for Crypto: Are CBDCs on the Horizon?
All the attention is on XRP
Interestingly, throughout the 584-page document reflecting opinions from numerous Americans, XRP was mentioned 111 times. As the Federal Reserve continues discussions on CBDC design, these repeated references and endorsements of XRP and XRPL raise questions about their potential impact on the Fed’s decisions.
What’s Coming Next?
Despite legal challenges with the U.S. Securities and Exchange Commission (SEC), Ripple is making significant financial moves. The acquisition of the Swiss company Metaco is a testament to Ripple’s expanding influence, catching the eye of financial giants like HSBC. This collaboration has garnered praise for Ripple’s technology and the XRP Ledger.
Notably, Ripple is teaming up with Mastercard for an XRP debit card, paving the way for XRP to become a practical choice for everyday spending.
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