Ripple, a leading crypto fintech company, is going forward to bring the XRP Ledger to central banks.
Recently, Ripple announced via a job listing site that it was looking to hire three central bank technical partner managers – one for each of its offices in London, San Francisco, and New York.
Whoever fills those highly ranked positions will be mandated to design and deploy central bank digital currency (CBDC) projects.
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Ripple also acknowledged that leading US banks could issue stablecoins on the XRP Ledger:
- The XRP Ledger (XRPL) is an open-source, decentralized blockchain technology that provides significant benefits for banks such as scalability, speed, and cost.
- Financial institutions using it today leverage XRPL for its ability to fully settle transactions for fractions of a penny and in just 3-5 seconds—faster than any other major blockchain.
- Built for payments, XRPL can also be used to support the issuance of stablecoins with a unique, fungible token functionality called Issued Currencies. Issued Currencies is designed to be the ideal stablecoin platform, providing simple but rich management functionality for the issuer that makes it easy to create, issue, and manage any asset—including stablecoin.
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Recall that a powerful financial regulator, through the Comptroller of the Currency (OCC), clarified details on American national banks’ and federal savings associations’ authority in taking part in using stablecoins to conduct payment activities and other bank-permissible functions.
What you should know: Stablecoins are cryptocurrencies created to minimize the price swings that occur in a crypto asset. They are usually pegged to fiat currencies and often exchange-traded commodities.
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Stablecoins give owners a sense of security as users can store their assets whenever there is high volatility in the crypto-verse or other financial markets.