Ripple supports CBDCs in white paper
Ripple, a specialist in blockchain-based digital payments, has published a white paper affirming its support for central bank digital currencies (CBDCs). In this 23-page document released on December 14, Ripple explains the basics of CBDCs, their appeal, the risks and the obstacles to their widespread adoption. According to Ripple, CBDCs promote financial inclusion, simplify cross-border payments and strengthen control over monetary policy.
The white paper highlights that CBDCs are necessary to support the benefits of asset tokenization, which involves transforming tangible assets into digital tokens on the blockchain. However, Ripple recognizes several barriers to the adoption of CBDCs, such as the lack of a uniform and global regulatory framework, lack of end-user adoption, lack of consumer education, concerns about life privacy and security, digital identity verification, interoperability between CBDCs and offline access to transactions. However, these issues can be fixed according to Ripple.
Ripple plays an active role in the development of CBDCs through collaborations with more than 20 central banks, including in Bhutan, Palau, Montenegro, Colombia and Hong Kong. The white paper predicts $5 trillion in CBDC circulation across major economies over the next decade.
James Wallis, vice president of Ripple, expressed similar optimism about central banks' commitment to CBDCs. According to him, CBDCs offer a cost-effective solution for providing financial services at a lower cost than traditional methods. They also offer simplified payment options and the ability to establish credit without prior ties to financial institutions.
