Saturday, November 28, 2020
No menu items!
  • News
  • XRP News
  • Contact Us
More

    David Schwartz: XRP Should Serve As a Universal Settlement Asset for CBDCs

    Must Read

    Bitcoin (BTC) Will Be Bigger Than Apple, Amazon, and Facebook –MicroStrategy CEO Michael Saylor

    The chief executive officer of MicroStrategy, Michael Saylor, has highlighted the reason why his company decided to purchase hundreds...

    This New Proposal Suggests How Ethereum Would Transition into PoS without Unnecessary Complexity

    As the much-anticipated upgrade of the Ethereum network to proof-of-stake (PoS) protocol draws near, developer Mikhail Kalinin has published...

    CEO of Global Macro Investor Raoul Pal Says He’s Developing an Interest in XRP

    The founder/CEO of Global Macro Investor and Real Vision Group, Raoul Pal, has some hours ago stated that he’s...
    Avatar
    Solomon Odunayo
    Solomon has a growing passion for writing, this propelled him to keenly work on Eagles News Media for about two years before delving into the cryptocurrency and Blockchain industry he finds more interesting. He worked as a crypto Journalist and Editor at NewsLogical before joining Herald Sheets, owing to the priceless experience he has accumulated since he became a contributor in the crypto community.




    In a conversation with Pastebin on 19th October 2020, the Ripple CTO, David Schwartz, spoke expressly about Ripple’s effort in improving international payments for enterprise customers via blockchain technology.

    He said Ripple’s ultimate goal is to build an “Internet of Value” that will make payments as easy as email for enterprises of all sizes and customers around the world.

    Schwartz noted:

    “Obviously, we’re not going to build that all by ourselves. It’s an audacious goal, and in 8 years, we’ve learned a lot about where the challenges are. Also, where the opportunities are.”

    Read Also: Ripple CEO Brad Garlinghouse Says One-Fifth of Transactions on RippleNet Are Done Using XRP

    David Schwartz’s Take on Central Bank Digital Currency (CBDC)

    The Ripple CTO also spoke about the benefits that can be derived from the much talked about Central Bank Digital Currencies (CBDCs). He said CBDCs are capable of enhancing the speed and reliability of domestic transactions. He stated that good domestic settlement will surely impact international payments, so, CBDCs could bring about cost-effectiveness.

    Schwartz believes interoperability is an important factor in a good cross-border payment system. He, therefore, suggests that there is a need for a neutral asset in between different CBDCs to build stronger liquidity.

    He further pointed out that CBDC is not going to take over the responsibility of universal settlement assets:

    “A central bank is not going to issue a digital asset that behaves like BTC, XRP, ETH — these are neutral assets that should remain free from single jurisdiction control.”

    “You need a neutral asset going in-between CBDCs serving as a settlement asset across jurisdictions — accepted by all because everyone accepts that they can’t get the whole world to use an asset they control, and so an asset nobody can control is better than one controlled by one of their geopolitical competitors.”

    XRP Should Serve As a Neutral Asset for CBDCs

    According to David Schwartz, the neutral assets don’t have to be on one network. He, however, said if there is one network at the hub, such a network has to be built with interoperability in mind. He said both XRP and XRP Ledger are already built and good for such a role.

    “XRPL was purposely built for transacting both in a native, neutral asset, XRP and also in “issued assets” to bridge to CBDCs, stablecoins, other payment networks, and other kinds of assets,” Schwartz noted.

    Read Also: David Schwartz Speaks On the Validity of Claiming Spark Tokens and Safety of XRP Holders

    He admitted that XRP Ledger does not have the capability to handle all the world’s payments, so, the idea of “one network” solution is not advisable.

    But he thinks “XRP can be the hub or backbone that provides the fast international settlement piece. It won’t solve the last mile problem, but will help with interoperability and concentrating liquidity so enterprises don’t have to be keep funds in every payment system.”

    Join us on Twitter

    Join us on Telegram

    Join us on Facebook




    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Latest News

    Bitcoin (BTC) Will Be Bigger Than Apple, Amazon, and Facebook –MicroStrategy CEO Michael Saylor

    The chief executive officer of MicroStrategy, Michael Saylor, has highlighted the reason why his company decided to purchase hundreds...

    This New Proposal Suggests How Ethereum Would Transition into PoS without Unnecessary Complexity

    As the much-anticipated upgrade of the Ethereum network to proof-of-stake (PoS) protocol draws near, developer Mikhail Kalinin has published a new proposal that is...

    CEO of Global Macro Investor Raoul Pal Says He’s Developing an Interest in XRP

    The founder/CEO of Global Macro Investor and Real Vision Group, Raoul Pal, has some hours ago stated that he’s developing an interest in the...

    Ripple Seeks To Hire Chief Economist to Help Manage Its Trove of 54,642,632,616 XRP

    According to the recent job listing, Ripple, the San Francisco-based cross-border payment platform is seeking to hire a chief economist to help devise a...

    Cardano’s Goguen Era Progresses to Its Full Implementation with This Development Update

    According to the recent rollout update made available by two Cardano (ADA) project managers, the much-anticipated Goguen era is progressing to its full implementation. The...

    More Articles Like This