TL;DR Breakdown
- Ripple says its token can serve as bridge between CBDCs
- XRP price has rebounded
Ripple, in one of its recent publications, has said that its native token, XRP, can serve as a bridge between stablecoins issued by banks.
In the report, the crypto firm identified that Central Bank Digital Currencies (CBDC) would play an immense role in changing the financial system worldwide.
The firm also noted that 2021 would be a massive year for integrating CBDCs, highlighting the impending launch of the Chinese Digital Yuan. According to the crypto company, the global pandemic and the increased need for a cashless payment system has driven the developments made in recent times in the field.
Through its article, Ripple highlighted that the central banks currently working on a CBDC project must, at the same time, look out for the interoperability of those digital assets. This depends greatly on the availability of neutral bridges that would optimize the assets for speed, scalability, and cost.
The firm believes that this would free up capital and facilitate transfer value between national digital currencies. This is where XRP comes in as an ideal instrument that would bridge two different currencies quickly and efficiently
Ripple’s XRP price rebounds
Since the tail end of last year, Ripple’s XRP has wobbled immensely with the crypto asset dropping from high as over $0.70 to below $0.20.
The crypto asset had suffered massively from the impending litigation filed against it by the Securities and Exchange Commission (SEC) – alleging that XRP is not a token.
However, recently, the value of the crypto coin has rebounded as it has gained from the bull run the industry has been on.
XRP has gained up to 37% back in its price in the first week of this year. The asset’s price has also moved up to above $0.30, which is the highest the price of the asset has been since it began its descent in 2020.
