Ripple releases a white paper on CBDCs, reiterating its confidence in their potential
Ripple has doubled down on public support for central bank digital currencies (CBCCs) in a new white paper.
A 23-page document released by blockchain-based digital payments company Ripple on December 14 explains the basics of CBDCs, their beauty, risks and barriers to wider adoption. The white paper says the CBCC will help expand financial inclusion, streamline cross-border payments and strengthen monetary policy oversight. It also says:
“CBDCs are needed to support the most important positive effects of wealth tokenization, which is a mechanism aimed at transforming the increasingly tangible assets stored on the blockchain into digital tokens.”
Among the barriers to adoption, Ripple highlights the lack of a unified global regulatory framework for CBDCs. Other factors include lack of end-user adoption, “little-to-no” consumer education, fears about privacy and security safeguards, digital identity verification, lack of interoperability between CBCCs, and offline access to transactions. However, the authors of the white paper believe these issues are “not insurmountable.”
RELATED: Palau's Ripple-Backed Stablecoin Pilot Scores Positive Results
The company cites its role in developing CBDCs around the world. Ripple is actively involved in CBCC collaborations in Bhutan, Palau, Montenegro, Colombia and Hong Kong, with more than 20 global central banks collaborating on CBCC initiatives.
The white paper concludes that CBCCs have exciting potential, with $5 trillion being deployed in major economies over the next decade.
In November, Ripple's Vice President James Wallis expressed the same hope for central bank operations. Wallis argues that CBCCs provide a cost-effective solution by enabling financial services at significantly lower costs than traditional methods. He added that CBDCs offer streamlined payment options and opportunities to establish credit, despite previously not having a relationship with financial institutions.
Magazine: Legislators' fear and skepticism fuel proposed crypto regulations in the US.
