More and more countries are working on their own digital currency. Great powers such as China, India and Russia are at the forefront, while dozens of other countries still experiment with pilots or do research. In that global race the role of XRP is increasingly striking, even with bank giant JP Morgan.
Ripple receives praise from JP Morgan in Amsterdam
During the prestigious fintech conference Money20/20 In our own capital, the company was unexpectedly praised from JP Morgan. The American large bank labeled Ripple as a “heavyweight in the era of central bank digital currencies” (CBDCs).
Ripple has been working with governments and financial institutions for years that are experimenting with these CBDCs. The XRP Ledger (XRPL) is thereby presented as an efficient solution for fast, safe and cheap cross -border transactions.
What are CBDCs?
CBDCs stands for Central Bank Digital Currencies. They are digital currency that is issued and guaranteed by central banks, and therefore the digital variant of traditional fiat money, such as the dollar or the euro.
Examples are pilot projects in countries such as Palau, Bhutan and Georgia, where a private version of the XRPL is used. In addition, these countries set up their own blockchain network that runs on the same technology as the public XRPL. Those networks probably don’t need XRP to function. Depending on the implementation, this may or may not have an effect on the demand for XRP.
In some cases, XRP is used as a neutral bridge currency, which does encourage the question. Mastercard, strikingly, recognized the digital currency officially as BrugValuta earlier this year.
Digital currency on the rise
The discussion during the conference was about the developed markets, where initiatives such as the digital dollar and euro are on the rise. For example, the European Central Bank (ECB) is currently investigating various options for the launch of a digital euro. In addition, the bank looks remarkably enough at public block chains such as Ethereum (ETH) and Solana (SOL) as a possible infrastructure.
The emerging economies were also discussed, where Stablecoins and Decentralized Finance (Defi) can bring about a revolution by making financial services accessible to a much wider audience.
According to data that crypto analyst Smqke shared, there are now 3 countries (Bahamas, Jamaica and Nigeria) who have already launched a national digital currency. In addition, there are 49 pilots, 20 countries are in the development phase and 36 are doing active research.
JP Morgan launches its own coin on Ethereum network
In the meantime, JP Morgan is becoming increasingly in blockchain technology. Striking, because CEO Jamie Dimon was known for years as a pronounced crypto-skeptic. “I don’t understand why you would use a stablecoin instead of just a payment,” he said recently.
Yet the bank took a striking step: the launch of JPMD, a digital currency on the base, that is a estimation network on top of Ethereum. This token is in fact a digital version of a bank deposit at JP Morgan, similar to a stablecoin.
Source: https://newsbit.nl/jpmorgan-noemt-ripple-een-zwaargewicht-dit-is-waarom/
