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key takeaways
- Ripple is working with the Digital Euro Association to share technical knowledge for a European CBDC.
- This is unrelated to earlier news that the European Commission intends to create a framework for a CBDC by 2023.
- Ripple has previously been involved with CBDC efforts in the UK, Bhutan, and the Republic of Palau.
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Wave has joined the Digital Euro Association (DEA) to provide information on the design of central bank digital currencies (CBDCs).
The association will involve the exchange of knowledge
The president of the Digital Euro Association, Jonas Gross, suggested that the association will largely involve the exchange of knowledge and about digital currencies.
Gross stated that Ripple will help “broaden the technology expertise of the DEA community,” noting that CBDC or government stablecoin projects increasingly need advice on technology design as they move beyond the initial research stage. .
Ripple’s vice president of central bank engagements, James Wallis, said Ripple has “significantly invested in the world of CBDCs” and has 40 members working on CBDCs around the world. He added that the association “will further develop [Ripple’s] work in the CBDC area.”
Today’s news seems unrelated to reports on thursday that the European Commission could establish a framework for a digital euro by the end of 2023. The DEA is a think tank, while the European Commission is an executive branch of the EU government.
As such, the efforts of Ripple and the DEA will not likely lead directly to the creation of a digital euro, unlike the efforts of the Commission. Still, the association could influence the design of an eventual CBDC if the DEA think tank engages with policymakers.
Ripple has been involved with CBDC before
CBDCs are digital assets issued on a centrally operated ledger and pegged to the price of a country’s main currency.
Although Ripple is native XRP token is not a CBDC, its blockchain is designed for institutions and businesses, making it an attractive option for governments looking to issue a CBDC. Bhutan and Palau have chosen to work with Ripple in their CBDC efforts.
Ripple also got involved with the Digital Pound Foundation, an NGO investigating a CBDC for the UK, in October 2021.
In other news, Ripple’s lawsuit with the US SEC continued this week. The SEC initially alleged that Ripple’s token sales constituted sales of unregistered securities. december 2020.
Disclosure: At the time of writing, the author of this article owned BTC, ETH, and other cryptocurrencies.
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