Ripple has reinforced its advocacy for central bank digital currencies (CBDCs) by publishing an extensive white paper on the subject. The document, unveiled on December 14, delves into the core principles, benefits, risks, and hurdles in adopting CBDCs.
According to Ripple, CBDCs are instrumental in broadening financial inclusion, enhancing international payments, and strengthening monetary policy efficacy. The white paper suggests that CBDCs are pivotal for the impactful transition of physical assets into blockchain-based digital tokens.
Ripple identifies key obstacles in CBDC adoption, such as the lack of a consistent global regulatory framework and insufficient public awareness, alongside concerns over privacy, security, and the need for digital identity verification. The paper expresses confidence in overcoming these challenges.
Ripple boasts of its global involvement in developing CBDCs, collaborating with over twenty central banks and engaging in projects across Bhutan, Palau, Montenegro, Colombia, and Hong Kong.
The white paper foresees a bright future for CBDCs, predicting their circulation could reach $5 trillion in major economies within a decade. Ripple’s VP, James Wallis, shares this optimism, highlighting CBDCs’ potential to provide economical financial services and foster financial inclusion, even for those previously outside the banking system.