Ripple CEO, Brad Garlinghouse is convinced interoperability is the main reason why the creation of a Central Bank Digital Currency (CBDC) would not threaten Ripple’s cross border payment system.
In his statement, the Ripple CEO said the presence of interoperability puts Ripple’s cross-border payment system far ahead of the digital currency. Countries around the world have been making huge moves to launch their respective CBDCs.
Going further, Brad stated that the banks are just improving the same payment system in a new way with the absence of interoperability. His tweets are coming off the back of the recent article by Ripple Newsletter which said XRP would be able to carry out transfers of CBDCs.
Presently, major countries around the globe, with China spearheading it, are already taking huge steps towards the launch of their CBDCs with pilot tests around the states. In recent weeks, European Central Bank president, Christine Lagarde has said that the financial institution was looking for ways to launch a European digital currency.
As it stands now, countries are trying to make their respective currencies retain their sovereignty as they push for the launch. Because of this, Ripple CEO, Brad Garlinghouse has asked US authorities to look into the regulation of crypto assets, so they will not be left behind in the brewing tech cold war.
Ripple will act as a bridge between different assets, Brad Garlinghouse says
One important aspect is to have a payment system that would create a bridge between various state-controlled CBDCs, which is where the On-Demand Liquidity (ODL) by RippleNet comes in. The ODL carries out its cross border payments activities with the use of Ripples Native asset, XRP and will be used to balance powers across different global currencies.
In a statement that was released by the Ripple CEO, he said XRP would create a common environment for international trade. This means that instead of competition with CBDC, Ripple would work very hard to make sure it acts as a bridge between CBDCs.