XRP is not competing with central bank digital currencies (CBDCs) like the forthcoming digital yuan, according to a senior executive at Ripple.
August 19, 2020 | AtoZ Markets – Emi Yoshikawa, the senior director of global operations at Ripple, claimed that XRP does not compete either with central bank digital currencies (CBDC) or stablecoins. In an interview with Japanese crypto exchange FXcoin, Yoshikawa said that XRP is complementary to the global progress in CBDC and stablecoin development.
“There are various types of crypto assets, but I think that the role of XRP as a bridge asset in international settlements, and is not competing with stablecoins or CBDC,” she said.
XRP’s role is not to compete with stablecoins or CBDCs
Ripple executive went on to say that XRP’s role is not to compete with stablecoins or CBDC, but on the contrary, it is complementary to them. “We believe that various stablecoins and CBDCs will create synergy by responding to the liquidity problem by bridging independent crypto assets, XRP,” she added.
Yoshikawa mentioned Ripple’s flagship settlement product, On-Demand Liquidity, or ODL. Formerly known as xRapid, Ripple’s ODL is designed to process cross-border payments and reduce operational costs. Ripple executive emphasized that ODL is designed to eliminate pre-funding in cross-border payments.
Ripple targets the Indian market to provide remittance services.
Earlier, Navin Gupta, the Managing Director of Ripple in South Asia and MENA confirmed that the growing Indian remittance market is a target area for the company and it is keen on introducing XRP into the market for transaction purpose.
Navin Gupta, during an interaction with the Editor of indiainfoline.com, Shweta Papriwal, revealed that Ripple began operation in the Asian country in 2017 with two offices in popular cities Bengaluru and Mumbai. Ripple official said the archaic and costly means of transferring money abroad gulps not less than 7% of the original money value for each transfer to India.
Central banks around the world are currently exploring national digital currency, with China likely to become the first major nation to launch its CBDC.
Think we missed something? Let us know in the comment section below.