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Bullish stuff about CBDCs and Central Banks


Scout
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If you read to the end of the article:-

Mike Baldwin, the head of transactional solutions, global transactional solutions and client experience at Westpac’s institutional bank, said the latest R3 tests are encouraging, and the technology is working. But the use of blockchain for cross-border payments will not be adopted at scale until central banks issue digital versions of their own fiat currencies, he said. This would allow banks to transfer value on a distributed ledger using a currency backed by a central bank rather than having to rely on cryptocurrencies like Ripple’s XRP or bitcoin, which remain volatile.

We would not want to use a cryptocurrency in real life as there is too much risk. We want something backed by reserve banks,” he said.

My question is, what are the reserve banks backed by :)

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Posted (edited)
56 minutes ago, Scout said:

https://australianfintech.com.au/westpac-says-rba-issued-digital-currency-would-boost-blockchain/

Warning this article is very bullish for blockchain.

What’s XRP’s use case now? Looks like no central bank wants a middle man.

I'm not sure what you mean with middle man? Correspondence banks that hold the nostro accounts?

Part of the article is unclear to me to be honest or maybe I'm not reading it correctly. It says "This would allow banks to transfer value on a distributed ledger using a currency backed by a central bank rather than having to rely on cryptocurrencies like Ripple’s XRP or Bitcoin, which remain volatile." A CBDC is a digital representation of existing fiat money and from what I understand, XRP wasn't made to replace any fiat currency, nor was it created to function as a bridge between domestic banks (banks that use the same fiat currency obviously do not need a bridge). But when a central bank in country A wants to transfer its dollar backed CBDCs to a bank in country B that wishes to receive euro backed CBDCs, you'll be able to do that much faster and cheaper using a bridging currency like XRP, than using traditional correspondence banking.

Edited by Danny
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Posted (edited)
6 hours ago, Scout said:

https://australianfintech.com.au/westpac-says-rba-issued-digital-currency-would-boost-blockchain/

Warning this article is very bullish for blockchain.

What’s XRP’s use case now? Looks like no central bank wants a middle man.

Who or what is going to convert between CBDC of Country A and CBDC of Country B .. Assuming a sender from Country A wants to send money to country B and each party wants to transact in their respective native currencies.  Who will provide those liquidity corridors ?

Obviously a bridge currency like XRP that have established corridors between different countries supported by cryptocurrency exchanges within each respective country.

Edited by richxrp
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Posted (edited)

Sorry guys, couldn’t find a date on the article and it was my first time reading it. Thought it was new but I see this article has already been discussed in these forums back in 2016 as shown here. Probably not a significant article anyway. I should have done more research before posting here.

 

Edited by Scout
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Even KLAUS MARTIN LÖBER speaks about ripples. Who is Martin Löber: Klaus Martin Löber is Head of Supervision of the European Central Bank. In this role, he is responsible for the supervision of financial market infrastructures (payment systems, central securities depositories and central counterparties) as well as payment instruments and systems (such as card payment systems, credit transfers, direct debits or e-money systems). His remit includes the ECB's activities in EU and global regulatory policy, with a focus on the security and efficiency of payments and market infrastructures, including risk management and cyber resilience.

https://xrprightnow.com/european-central-bank-speaking-on-new-forms-of-cross-currency-settlement-ripplenet/

Just like @richxrp wrote. Bridge currency like XRP that have set up corridors between different countries supported by cryptocurrency exchanges within each country.

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