A 44-page report commissioned by Australia’s CPA provides an in-depth study of the development status of global central bank digital currencies, discusses viable blockchain candidates for custody of CBDC in the next few years, and provides support for the three largest cryptocurrencies Bitcoin, Ethereum and XRP were evaluated.
The CPA report stated in the section entitled “XRP-Ripple’s Digital Token”, “Ripple will be an alternative platform to Ethereum. XRP is the main currency used on this platform and can be paid as easily as any currency or card. Ripple It has its own patented technology, the Ripple Protocol Consensus Algorithm (RPCA), in order to verify transactions. The idea of Ripple and XRP as a CBDC template is currently affirmed by many banks because it is highly centralized and based on a permissioned network. Only certain network nodes can verify transactions, unlike decentralized and permissionless Bitcoin and Ethereum.”
The report also described Bitcoin as a too unstable medium of exchange and value storage, while Ethereum is a completely decentralized blockchain-based software platform that is not controlled by any country. The article also wrote that the Reserve Bank of Australia has issued a statement stating that it is considering running a CBDC project on the Ethereum network.
The article also mentioned that the Bank of France is interested in exploring the possibility of Ripple as a custody platform for CBDC in Europe. According to a report on April 2, 2020, the Central Bank of France is analyzing how to use existing cryptocurrencies to develop central bank digital currencies. In the latest internal report, the Bank of France emphasized that Ethereum (ETH) and Ripple (XRP) can be used to issue tokenized central bank digital currencies.
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.