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After introducing the XRP LEDGER which gives central banks secure solution to manage crypto, Ripple came up with new findings. The company has long maintained that distributed ledger technology would be the foundation for the Central Bank Digital Currency (CBDC). The new study found that the potential for CBDCs has generated an overwhelming consensus among financial institutions.
More Support To CBDCs From Asia Pacific
In the long run, the adoption of CBDCs could potentially be beneficial for Ripple (XRP), which currently stands at seventh rank among cryptocurrencies. The company’s technology could help central banks handle transactions in large volumes. Ripple products use XRP to facilitate payments between intermediaries for settling two different currencies. Ripple’s latest survey found that the Asia Pacific region is the most optimistic about the future of CBDCs.
“Over 70% of respondents surveyed across five global regions believe CBDCs stand to deliver major social change within the next five years. In addition to faster and more affordable payments, the digital nature of CBDCs can make loans and other financial services more accessible to historically underserved communities.”
Also, in line with Ripple’s technology benefits, the CBDCs could also facilitate easier distribution of funds for social welfare programs. However, Ripple acknowledged difficulties like consumer education, identity verification, offline access, and privacy and security protections.
CBDC Projects Pick Up Pace Across The World
Meanwhile, it also remains important for Ripple to deliver on the promise of all the benefits the technology offers. Nine out of 10 central banks are now exploring CBDCs, according to a survey by the Bank for International Settlements. The CBDC projects of various central banks are underway in various stages in China, Bhutan and Norway among others.
