Ripple Labs Inc., a leading provider of cross-border payments recently disclosed a partnership with ten governments to introduce Central Bank Digital Currencies (CBDCs). The news was confirmed by Ripple’s CEO, Brad Garlinghouse while speaking in a recent interview.
Global CBDCs Initiative: A Game Changer for XRPL
Created by Ripple, the XRP Ledger (XRPL) is a blockchain solution that provides low-cost, fast, and real-time transfer of digital and fiat currencies. Garlinghouse highlighted that the collaboration will be a game changer for the XRP Ledger, moving from speculation to utility in 2024.
🚨 HUGE RIPPLE $XRP NEWS! 🚨
RIPPLE CEO CONFIRMS HIS COMPANY IS WORKING WITH 10 GOVERNMENTS AROUND THE WORLD ON CBDCs. 👀🌎
“A Central Bank Digital Currency Is A Stablecoin, It’s Just Issued By The Government” — @bgarlinghouse
The Game Is Changing For The #XRPL… Moving From… pic.twitter.com/zvExCcEHYS
— Good Morning Crypto (@AbsGMCrypto) June 16, 2024
The CEO described CBDCs as stablecoins being issued by the government. Note that, stablecoins are cryptocurrencies that are pegged to fiat currencies like the US dollar. Per their design, they can feature as a medium of exchange. Notably, the recent partnership announcement sparked a range of reactions from the online crypto community.
One commenter highlighted that Ripple’s CBDCs’ partnership could be a key reason why the firm is in a hurry to launch its stablecoin, RLUSD.
“Maybe XRP was just a test coin all this time like Songbird was for Flare,” he opined.
Another commenter expressed concerns about the implications of CBDCs on personal freedoms. The commenter questioned the excitement for what they see as a potential loss of freedom.
Ripple Labs’ Global CBDC Partnerships
It is worth mentioning that this is not the first instance of Ripple’s collaboration on CBDC development and expansion. Last year, Ripple announced a partnership with the Central Bank of Montenegro to develop Montenegrin’s digital currency.
In a similar move, Ripple teamed up with the National Bank of Georgia (NBG) to digitize Georgia’s economy and enhance financial technology in the country.
In a bolder move towards currency digitization, Ripple is set to launch its stablecoin known as Real USD (RLUSD). Unveiled at the XRP Ledger Apex Summit in Amsterdam, the stablecoin will be available on the XRPL. It will also go live on the Ethereum blockchain as revealed.
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