Ripple CTO confirms its CBDC Platform’s ability to use XRP token Ripple CTO confirms its CBDC Platform’s ability to use XRP token
David Schwartz clarifies CBDC Platform is XRP compatible - however, it remains to be seen if central banks opt to utilize the token.
2 min read
Updated: Jul. 12, 2023 at 2:42 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Ripple CTO David Schwartz confirmed the company’s CBDC Platform can interact with the XRP Ledger (XRPL) and XRP token.
The company released an update on its CBDC Platform on May 18 detailing improvements to the project.
Crypto publication Blockworks covered the story –ย detailing an email exchange with a Ripple spokesperson that made clear the CBDC Platform “does not require XRP to operate” and that central banks do not use or interact with the token.
In response, members of the XRP Army kicked up a storm, criticizing Blockworks for inaccurate reporting. However, as Blockworks author Katherine Ross explained, it is factually correct that the CBDC Platform does not use XRP and that central banks do not use XRP to operate the platform.
“The headline we ran is not misleading though, we said that there was no direct need for XRP. Yes, there is an โoptionโ for central banks to interact with or utilize XRP, but as I reported, banks using the platform โdo notโ need to use it.“
XRPL and XRP can interact with the CBDC Platform
Schwartz chimed in, saying the CBDC Platform operates on the “same core technology” as the XRPL and can connect with the XRPL and use XRP tokens.
“It has the ability to interact with #XRPL and use XRP as a bridge currency for cross-currency and cross-border payments.“
It was put to Schwartz that having a bridging option to the XRPL is not the same as central banks using the XRPL and XRP in their day-to-day CBDC Platform operations.
The Ripple CTO acknowledged there is no guarantee central banks will use the bridge. However, he maintained that the company’s approach was to “remove technical barriers” and allow users to use XRP if they choose to – rather than force the matter. This, said Schwartz, makes for a better product experience.
“I never recommend building products that require people to use XRP (unless they’re XRPL features) because that becomes a reason not to use the product.”
Ripple CBDC Platform
An update on the CBDC Platform revealed Ripple had improved speed, lowered cost, and reduced settlement times since first announcing the project a year ago.
It was also mentioned that Ripple is working with more than 20 countries, including Palau and Montenegro, to roll out their respective CBDCs.
Recent days have seen a strong run from XRP, which recorded an 18-day high on Thursday off the back of current events, including Ripple’s acquisition of crypto custody firm Metaco.
However (amid a market-wide downturn,) XRP’s 24-hour performance is flat at the time of press.
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Samuel Wan
Samuel Wan, a finance professional turned full-time crypto content creator, values individual autonomy and personal freedom in his pursuits.
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Theย XRP Ledgerย is a decentralized cryptographic ledger powered by a network of peer-to-peer servers.
Ripple
Ripple is a US-based technology company which develops the Ripple payment protocol and exchange network using XRP, the digital asset native to the XRP Ledger.
David Schwartz holds the pivotal role of Chief Technology Officer at Ripple, where he has been instrumental in shaping the technological framework of the company.
