The crypto asset can be utilized as a more”neutral bridge” between different currencies, Ripple states.
Ripple has now pitched the XRP (-9.13%) cryptocurrency for a means to link different central bank digital currencies (CBDCs) in a new white paper.
XRP, which is employed in some of the company’s payment goods and Ripple assists build, may be a”neutral bridge” between different currencies, bringing speed and efficiency to the process, according to the document titled,”The Future of CBDCs.”
The French newspaper, published this week, explains cross-border payments with CBDCs as getting little attention from central banks, that largely target domestic use cases.
That is a”short-sighted” stance, according to Ripple, which states interoperable CBDCs could bring countries a competitive advantage, enabling commercial entities to make international trades.
“Supporting immediate real-time foreign exchanges, as opposed to the present 3-5 day procedure will likely still require the need for prefunded money account,” the paper states.
A neutral bridge money would then be required to support liquidity markets to permit for effective motion of value between distinct CBDCs.
Ripple looks to be pitching itself to central banks exploring and growing CBDCs amid its continuing lawsuit together with the U.S. Securities and Exchanges Commission (SEC) over its supposedly illegal earnings of XRP.
