Ripple CEO Brad Garlinghouse has recently said that while launching the central based digital currency (CBDC), the banks should keep interoperability at their priority. This statement regarding CBDC is coming because there have been huge discussions regarding them across the different countries. While talking about interoperability, Garlinghouse has also mentioned that XRP can play a major role in facilitating the exchange of CBDCs.
Over 70% of the central banks around the world are looking at deploying #CBDCs – and one thing that’s crystal clear is the importance of interoperability. If you’re not prioritizing this, you’re just rebuilding the same siloed system. https://t.co/AZdS5YBU8K
— Brad Garlinghouse (@bgarlinghouse) September 24, 2020
Garlinghouse Urges US to Not Lag Behind Other Countries
Recently there have been some huge developments regarding the central based digital currencies in different parts of the world. The COVID-19 pandemic has also contributed a lot towards this development as people are moving towards digital currency and assets. China, Sweden, and many other countries are currently testing their CBDC and huge developments are going on in this sector.
Christine Lagarde, the president of European Central Bank (ECB), has also said that their bank is currently exploring the benefits and risks which are associated with issuing a CBDC in Europe. Due to this, Garlinghouse has urged the US government to not lag behind other countries in this race of launching a CBDC. He also pointed out the comprehensive regulations that the nation has introduced for the crypto sector.
Ripple Will Not Compete With CBDC
In order to bridge the gap between various state-controlled digital currencies, On-Demand Liquidity (ODL) by RippleNet can play a major role. ODL relies on XRP which helps it conduct cross-border payments. ODL also works on correcting the balance of powers on a global scale. Concerning the CBDC, it is also mentioned by Garlinghouse that Ripple does not want to compete with CBDC. Rather, they are focusing on performing complementary functions and are aiming to help in CBDC’s exchange.