Garlinghouse Believes Central Banks Should Prioritise Interoperability With CBDC
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Garlinghouse Believes Central Banks Should Prioritise Interoperability With CBDC

September 25, 2020      Vandana Malik

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.

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.

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#Christine Lagarde #European Central Bank #Garlinghouse #ODL #ripplenet
Vandana Malik
Vandana Malik

Vandana has received Master of Arts degree in English from GEU Dehradun. She is currently working as a content writer with Agio Support Solutions and earlier worked as a sub-news editor at Business News and Information Services Private Limited. She is an enthusiastic content writer and aims to bring a compelling yet informative content to the audience. Meanwhile, enhancing her own knowledge in the cryptocurrency and blockchain industry.