Ripple Works on Private XRP Ledger for CBDC, Says Ex-Executive
In the world of cryptocurrencies, Ripple has been making waves with its development efforts for XRP. XRP is the native cryptocurrency for Ripple’s cross-border payment network which allows financial institutions to transfer money globally without intermediaries.
However, the recent statement made by former director of developer relations at Ripple, Matt Hamilton has raised the curtains on the company’s future endeavors. According to Hamilton, the company is currently working on private versions of the XRP Ledger specifically for central bank digital currencies (CBDCs).
CBDCs or “state cryptocurrencies” are digital currencies issued and backed by central governments. Their purpose is to function as a digital form of legal tender, with the aim of providing greater efficiency, security, and transparency to the existing financial infrastructure. Many countries are exploring the possibility of launching CBDCs, including China, Russia, and the United States.
Hamilton explained that the private versions of XRP Ledger code are being developed with the aim of meeting the specific requirements of CBDCs. However, he clarified that these versions have not been launched yet, as the regulatory framework for CBDCs is still being developed.
While Hamilton confirmed the private versions of the XRP Ledger code, he was not sure if any CBDC product from Ripple was ready yet. Previously, it was reported that Ripple is participating in initiatives to create digital dollars, pounds, and euros. The company is also working with the central bank of Montenegro on a CBDC.
The statement made by Hamilton also addressed the conspiracy theory that Ripple has its private chains on which there is some sort of private XRP. The theory speculates that the price of XRP differs on the public XRPL network and the private ones. Hamilton clarified that while a private XRP Ledger exists, any centralized exchange on which XRP is traded could be considered such, but there are no private versions of the cryptocurrency, and it only exists in the main public XRPL blockchain.
In simple terms, a private XRP could not be real because its existence would require the complete isolation of the network. Once it is opened up, any differences in price would be ironed out. Moreover, Ripple has been consistently working towards promoting the use of XRP token as a bridge currency hence the complete isolation of the token would be self-defeating.
This announcement by Ripple reinforces its continued focus on promoting the adoption of digital currencies globally. Development of private versions of the XRP Ledger code for CBDCs shows the company’s confidence in the future of CBDCs and its belief that Ripple can play a significant role in its development.
In conclusion, it is worth noting that Ripple has been the subject of legal and regulatory scrutiny by the US Securities and Exchange Commission (SEC) over the classification of XRP. Currently, the case is pending before the court with no clear resolution yet. However, the announcement regarding the development of private versions of XRP is likely to generate significant interest and could potentially have a positive effect on the outcome of the legal case.
The outcome of the case will have enormous implications not just for Ripple, but for the cryptocurrency market as a whole. Nevertheless, Ripple’s continued investment in CBDCs shows its determination to make strides in the cryptocurrency space and shape the future of digital currencies.
