Banque de France is considering the use of Ripple (XRP) as a platform for issuing its digital euros. This consideration come after the bank officially rejected Bitcoin and Ethereum as its basis for Digital Euro.
This development was made known in a report published last week. According to the report titled ‘Central Bank Currency (CBDC): A Comparative Review’, France’s Central Bank had discussed Ripple (XRP) as a prospective basis for introducing a digital euro currency. The report was published by accounting firm CPA Australia.
Prior to Ripple’s consideration, the two largest and world-famous cryptocurrencies Bitcoin and Ethereum were considered but eventually rejected due to the following reasons. After examination and analysis, Bitcoin was adjudged an overly risky method of transaction. Ethereum on the other hand was concluded to be decentralized and therefore could not be controlled by any government.
Although Ethereum was rejected by Banque de France as a platform for issuing its digital euro, the Australian Government is thinking of establishing a CBDC plan in the Ethereum community.
According to this report by CPA Australia, the world is gearing meteorically towards technology and is uncontrollably entering into a new technological phase which is as a result of the coronavirus disease tha broke out in December 2019 in Wuhan, China. The coronavirus disease and the pandemic that it resulted into have spurred the adoption and use of online payments and digital currency for transactions.
The report specifically stated that, Ripple (XRP) is an ‘alternate platform to Ethereum’, that Ripple (XRP) is a coin that runs in this ledger, and that ‘Ripple itself does not run on a blockchain network’, but operates through its own ledger execution of transactions under the assumption of XRPL.
The report also revealed that Ripple is highly centralized and that this is the reason it is trusted by many banks as a CBDC model. ‘Ripple and XRP enjoy the trust of many banks as a model for CBDCs because it is highly centralized and is based on a permissioned network where only certain network nodes can validate transactions, as opposed to decentralized and “permissionless” Bitcoin and Ethereum’.
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