Ripple News: U.S. Federal Reserve Examines XRP’s Role in CBDCs

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In the latest move, the U.S. Federal Reserve has become the talk of the town! Why? Because of the buzz surrounding XRP, the third-largest cryptocurrency. As ideas clash and opinions fly, the role of XRP in shaping central bank digital currencies is causing a stir. Hang tight as we dive into this exciting debate and see how XRP might rock the world of CBDCs! 

As per the recent development, a public questionnaire comprising 22 inquiries focused on understanding the risks, advantages, privacy concerns, and other aspects associated with CBDC adoption. Within this discussion, various respondents highlighted the role and potential of XRP, Ripple, and the XRP Ledger (XRPL). They asked about risks, benefits, and how to use digital money like XRP. People had different ideas. 

Replacing CBDC with XRP: Mixed Reaction? Big Change Awaits!

Several respondents, such as James Hughes, emphasized the need for ongoing communication with the cryptocurrency industry while cautioning against the utilization of “illegal” currencies like Bitcoin, Ethereum (ETH), and XRP. Ryan Hanna from the U.S. banking sector underlined the importance of offline capabilities in a CBDC and showcased Ripple and XRPL as models offering effective offline functionality.

On the flip side, some voices, like crypto enthusiast James Ryckman, argued against the necessity of a U.S. CBDC for cross-border transactions, suggesting Ripple and XRP as suitable bridge solutions. Others, like Luke Keagy from the U.S. construction industry, proposed using XRPL to create a sidechain, fostering collaboration between the Federal Reserve’s currency and private sector innovation.

Interestingly, throughout the 584-page document reflecting opinions from numerous Americans, XRP was mentioned 111 times. As the Federal Reserve continues discussions on CBDC design, these repeated references and endorsements of XRP and XRPL raise questions about their potential impact on the Fed’s decisions.

What’s Coming Next? 

Despite Ripple’s legal battles with the US SEC, it’s been making big financial moves. They bought a Swiss company called Metaco, showing Ripple’s growing impact. This team-up got banks like HSBC interested, liking Ripple’s tech and XRP Ledger. Ripple’s also teaming up with Mastercard for an XRP debit card, aiming to make XRP useful for everyday spending.