Ripple CEO Brad Garlinghouse: XRP can facilitate the exchange of CBDCs
While governments are racing to adopt the central bank’s digital currency (CBDC), Ripple CEO Brad Garlinghouse has pointed to a fatal flaw with how their systems are built.
Ripple CEO Brad Garlinghouse says central banks should prioritize interoperability with CBDCs
He believes that interoperability is the most important prerequisite for their success:
“Over 70% of the central banks around the world are looking at deploying #CBDCs – and one thing that’s crystal clear is the importance of interoperability. If you’re not prioritizing this, you’re just rebuilding the same siloed system.”
Over 70% of the central banks around the world are looking at deploying #CBDCs – and one thing that’s crystal clear is the importance of interoperability. If you’re not prioritizing this, you’re just rebuilding the same siloed system. https://t.co/AZdS5YBU8K
— Brad Garlinghouse (@bgarlinghouse) September 24, 2020
Furthermore, according to Ripple Insights, XRP is fully qualified to make the environment for a CBDC exchange. Meanwhile, China, Sweden, and other countries are actively testing their CBDCs. If it succeeds, and they use XRP’s network, all payments and transactions will be transferred faster.
Christine Lagarde, president of ECB, also revealed that her bank evaluates the benefits and risks associated with the issuance of an all-Europe digital currency in her recent speech.
At this point, the introduction of the CBDC appears to be inevitable as countries are trying to maintain the relevance of their sovereign currencies.
The US should not be left behind in “tech cold war”
Garlinghouse and other Ripple executives routinely urge the United States not to fall behind in the “tech cold war” by introducing comprehensive regulations for the cryptocurrency sector.
It’s necessary to bridge the gap between different state-controlled digital currencies, and this is where RippleNet’s On-Demand Liquidity (ODL) may come in handy.
ODL – which relies on XRP for conducting cross-border payments, could redress the balance of powers on the global scale:
“Using a neutral and efficient digital asset like XRP also reduces the hegemonic influences of the most powerful nations and helps level the playing field in the international trade’s payment system.”
Instead of competing with CBDCs, Ripple will perform an additional function, as noted earlier by Ripple’s Global Operations Director, Emi Yoshikawa.
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