In the World Economic Forum’s (WEF) recent report, XRP was shown as the currency best suited to the CBDC space.
The World Economic Forum (WEF) cited XRP, the token of Ripple, as the most suitable currency for the recently developing CBDC, the central bank digital currency.
In a report published earlier this year, WEF stated that central banks and government agencies are examining the potential of CBDCs to solve global problems such as the stability of payment systems. The Geneva-based international organization also clearly showed the difference between CBDCs and cryptocurrencies:
“The CBDC is a digitalized version of the sovereign currency created and published by the monetary authority of the country and its obligation. CBDC differs from other forms of digital or virtual currency, including cryptocurrencies such as Bitcoin and ‘stablecoin’ that are not issued by central banks or typically not accepted as legal payments.
“CBDC is a digital currency issued by the country’s monetary authority and whose obligations belong to this institution. Cryptocurrencies such as Bitcoin and fixed coins are not issued by central banks and are not accepted as legal payment instruments.
Although the organization makes a very clear distinction between cryptocurrencies and CBDCs, the 4th largest cryptocurrency, XRP; The CBDC world did not hesitate to show it as the most suitable currency for interbank payments and transactions.
Stating that central banks have recently entered a race for their digital currencies, Ripple company released a statement on how XRP will facilitate the use of CBDCs:
“RippleNet’s” On-Demand Liquidity service “allows financial institutions to make real-time transactions in multiple global markets using XRP. This solution can also support direct exchange of CBDCs. XRP is faster, cheaper and more scalable than other digital currencies as an ideal instrument to connect two different currencies. “