Ripple’s James Wallis emphasizes CDCs’ role in breaking down financial barriers
Ripple's Vice President of Central Bank Engagement and Central Bank Digital Currencies (CBDCs) James Wallis highlighted the role of CBCCs in global financial inclusion in a short video. Wallis explains that financial inclusion aims to expand financial services to individuals around the world, especially those with low incomes and those who do not have access to financial institutions.
Wallis pointed out the key factors behind financial exclusion, including low incomes and lack of existing linkages with financial institutions, resulting in a lack of credit history. In financially marginalized regions, banks are often shareholder-driven businesses, which pose challenges in serving individuals with limited resources, as it is difficult to profit from such a demographic.
Wallis argues that CBCCs provide a cost-effective solution by enabling financial services at significantly lower costs than traditional methods. He said CBCCs offer streamlined payment options and opportunities to establish credit even if they are not already affiliated with financial institutions.
This allows individuals to build credit history, develop borrowing skills and grow their businesses. Wallis concludes that CBCCs represent a transformative innovation that addresses global challenges in financial inclusion.
Ripple is working with more than 20 central banks globally on CBCC initiatives and has played the role of technology partner for the second Georgia Digital Larry project. In addition, Ripple is actively involved in CBCC collaborations in Bhutan, Palau, Montenegro, Colombia and Hong Kong.
Related: Ripple's lawyer urges fact-checking of Gary Gensler's speech, says SEC actions seen as ‘shady'
Ripple is in an ongoing legal battle with the United States Securities and Exchange Commission. In July, Ripple received recognition from Currency Research for its contributions to digital currency development and better sustainability initiatives, particularly to encourage innovation in CBCCs.
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