Jeremy Hogan recently discussed how manufacturers of central bank digital currency (CBDC) could benefit from using the XRP Ledger.
Hogan said CBDC makers could use XRP to make fast, secure payments without a third party.
He suggested that this would help them reduce costs and enable more efficient transfers of value between entities.
Hogan also suggested that CBDC producers employ XRP’s smart contracts to hold assets in a secure environment with immutable rulesets.
He also emphasized that CBDC producers can exploit XRP’s liquidity, low latency, and scalability by integrating with Visa or MasterCard.
More governments and financial organizations are developing central bank digital currencies (CBDCs).
Ripple CEO Brad Garlinghouse Highlighted CBDCs and XRP Ledger
Garlinghouse argued that central banks might mint their CBDCs on the XRP ledger as token-based IOUs. He believes this strategy would enable greater liquidity and faster payments than today’s technologies.
Garlinghouse said that CBDC issuance using XRPL would cut transaction costs, improve payment efficiency, and give retail customers real-time settlement.
Central bank digital currencies (CBDCs) and the XRP Ledger are being considered to speed up payments.
According to global payments expert Brad Garlinghouse, this opens up many opportunities that could benefit users.
Ripple Labs CTO David Schwartz and XRP developer Asheesh Birla have also suggested this. Ripple’s head of Regulatory Relations, Ryan Hogan, recently highlighted CBDCs and the XRP Ledger.
A central bank gateway lets consumers deposit or withdraw digital money using tokens like XRP or other cryptos.
The world of cryptocurrency has continued to evolve at a rapid pace.XRP Ledger (XRPL) has expanded cross-border payments, remittances, and other financial transactions.
According to Ripple CEO and Founder John Hogan, central banks producing stablecoins on the XRPL could improve services even more.
This would enable fast, cheap, and seamless transactions with the added benefit of being backed by the central bank.
This would also provide more control for regulators over these assets compared to private cryptocurrencies such as Bitcoin or Ethereum.
Furthermore, it could be an alternative payment system to traditional systems like Visa or Mastercard.
Over the past few years, blockchain technology has been increasingly popular, even with President Donald Trump.
John Hogan, a former White House lawyer, and presidential candidate told Forbes he was “rushed” to remark on blockchain technology.
He noted that as a lawyer, he “had no notion” about Blockchain. However, this doesn’t mean that Hogan isn’t aware of the potential of this new technology.
He explained how Blockchain could safeguard identities, create trusted networks, and facilitate global financial transactions.
This past year ended with a major announcement from the San Francisco-based fintech giant Ripple.
Ripple helped Bhutan’s Royal Monetary Authority launch its Central Bank Digital Currency (CBDC) trial by 2020.
Ngultrum Will Be a Digital Currency
This digital currency will be called Ngultrum and is set to become one of the world’s first CBDCs. This initiative has been a priority for the Royal Monetary Authority of Bhutan for years.
With Ripple’s aid, Ngultrum can be trustworthy, efficient, safe, and easily accessible to Bhutanese users.
The pilot phase will take place soon, promising both institutions many advantages. Palau, a small Pacific island nation, launched its Central Bank Digital Currency (CBDC).
Palau is developing a digital currency for wholesale and cross-border payments using Ripple Technologies and XRP Ledger.
After Ripple published “The Future of CBDCs” in March 2021, banks can use XRP Ledger to create digital currencies.
XRP would act as an intermediary and bridge currency for such transactions. Since the government will oversee this digital currency, it will allow Palau to make faster, more secure payments.
With ambitions for central bank digital currencies (CBDCs) and stablecoins, Ripple Labs Inc.’s XRP ledger is the leading blockchain technology.
Last year, Ripple CTO David Schwartz proposed federated sidechains on the XRP ledger to let banks establish their networks. This groundbreaking proposal has given rise to several innovative projects built on the XRPL.
The creation of stablecoins tied to USD and EUR is one such initiative. Stably (USDS), Statis (EURS), South African XUS, and Novatti Group Limited AUDC (Australian Dollar) adopt Schwartz’s idea.
