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Ripple CTO Unveils XRP's Potential in New CBDC Platform

Fri, 05/19/2023 - 09:54
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Gamza Khanzadaev
David Schwartz highlights XRP Ledger's role as CBDC platform launched
Ripple CTO Unveils XRP's Potential in New CBDC Platform
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Ripple, the crypto company, recently introduced a platform for the turnkey issuance of CBDCs, opening up opportunities for central banks, governments and financial institutions to establish their own digital currencies effortlessly. The launch of this innovative platform has sparked curiosity regarding its potential impact on XRPL, the core ledger technology that underpins Ripple's operations.

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David Schwartz, the chief technology officer at Ripple and one of the architects of XRPL, shared his perspective on the matter. He emphasized the significance of XRP Ledger, stating that the new platform reinforces its importance as it is constructed using the same fundamental ledger technology. Moreover, Schwartz highlighted the innovation's ability to seamlessly interact with XRPL and utilize XRP as a bridge currency for cross-currency and cross-border payments.

To use or not to use XRP

During the discussion, a community member raised an important question, inquiring of Schwartz whether the platform would indeed utilize XRP as a bridge currency.

In response, Ripple's CTO acknowledged the challenge of predicting the choices made by others. However, he stressed that their primary objective is to eliminate technical barriers and facilitate user-friendly products. Schwartz expressed his reluctance to recommend the development of products that require the compulsory usage of XRP, unless they are XRPL-specific features.

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This cautious approach ensures that individuals are not discouraged from adopting the product due to the mandatory utilization of XRP. Instead, he emphasized the importance of creating products that allow individuals who are not necessarily fond of XRP to utilize the platform. According to Schwartz, this approach expands the user base, potentially increasing the number of individuals who can conveniently employ XRP if it provides them with any benefits.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.