Central Bank of France Eyes XRP as Basis for Digital Euro

CPA Australia has released a report that says the Central Bank of France is considering using Ripple and XRP as a potential platform for issuing the digital euro.

Bitcoin, Ethereum rejected as the basis for CBDC

CPA Australia is a professional accounting organization in Australia that has been working since 1886 with more than 166,000 employees in over 150 nations globally.

They have published a report called "Central Bank Digital Currencies (CBDCs): A Comparative Review." The document has revealed that the French Central Bank has been discussing Ripple and XRP as a possible basis for launching the digital euro.

The two biggest cryptocurrencies have also been looked at. However, the report calls Bitcoin a too risky means of exchange. As for Ethereum, it is decentralized and cannot be controlled by any government.

Still, according to the report, the Australian government is considering launching a CBDC program for the Ethereum community.

The document states that the world is quickly entering a new stage of technological development due to the recent global pandemic that originated in China. It has spurred the adoption of digital currencies and online payments as opposed to cash—which can spread bacteria from one holder to another.

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XRP is mentioned as a better and centralized alternative

The report speaks of Ripple as an "alternative platform to Ethereum" and XRP as a coin that runs on its own ledger, stating that "Ripple does not operate on a blockchain network per se" but has its own ledger for performing transactions—presumably, XRPL.

The authors have also mentioned that Ripple is trusted by multiple banks as a model for CBDC due to its high centralization.

Ripple and XRP enjoy the trust of many banks as a model for CBDCs because it is highly centralised and is based on a permissioned network where only certain network nodes can validate transactions, as opposed to decentralised and permissionless Bitcoin and Ether.

The document has also stated that the Central Bank of France has already discussed XRP and Ripple as a potential platform for making the digital euro.

France's central bank, Banque de France, has openly discussed Ripple/XRP as a possible platform for Europe's central digital currency.