James Wallis, the RippleX vice president, has recently explained the role of Ripple, the San Francisco-based payment firm, in helping central banks to create their customized digital currencies.
According to James Wallis in a new interview on the Voice of FinTech podcast, Ripple has no plan to eliminate the existing financial system, but to rather compliment it.
James Wallis noted:
“We are building and implementing technology, we’re not trying to disintermediate the existing financial system. We’re trying to make it better. What we’re really trying to do is bring our technology and our expertise to the enterprise world.”
He also mentioned the effort the fintech is putting in place to build the technology that can be used to create, distribute, and track the transactions of CBDCs on the systems of record and on the blockchain. Wallis thinks an existing decentralized ledger such as Ripple’s would serve as a better solution in that regard.
Wallis said Ripple could leverage the experience it’s been using to manage an open-source project such as XRP Ledger to create a version that is somewhat centrally controlled, which a central bank could use and control comfortably without losing the hold on their monetary policy.
He said, “We are working with central banks to build out these capabilities that I mentioned, and the solution will be a mixture of open-source technology, maybe some elements from RippleNet down the road.”
Meanwhile, Ripple has started taking steps in order not to lag behind in the upcoming era of central bank digital currencies. Sometimes in November 2020, the firm published a job listing on Greenhouse.io, which seeks to hire a senior director of central bank engagements.
The statement reads as follows:
“Ripple is looking for a proven leader to lead our strategy, partnerships and project work with central banks around the world with an initial focus on supporting their central bank digital currency (CBDC) initiatives on XRP Ledger.
In this role, you will define and lead Ripple’s strategy with central banks, build relationships with and educate central bankers around the world, and secure and manage partnerships with central banks to build and deploy projects.”