- A Harvard report explains how Ripple and Stellar can facilitate the faster liquidation of CBDC worldwide.
- Ripple’s XRP and Stellar Lumens have thus become the preferred choice of several international companies.
Although the US Securities and Exchange Commission (SEC) is fighting Ripple hard, other market players continue to see great value in this blockchain network. Harvard University recently published a report on the path of the US digital dollar.
In the report, author Jayesh Mehta states that blockchain technology has reached sufficient maturity to manage FIAT currency in digital format. Interestingly, the report also notes that blockchain networks such as Ripple and Stellar Lumens are growing in acceptance while becoming the preferred choice for international businesses.
Furthermore, the report also goes on to explain how these two blockchain platforms can facilitate instant CBDC settlement worldwide while harnessing the power of AI and machine learning. This process also includes an ML-driven FX interface. The author explains the entire seven-step automated process for a constant funds transfer chain:
- The sender initiates the transaction in FIAT currency, receives the private key, and gives it to the recipient.
- The sender would choose between an immediate conversion or a future date conversion and instruct the ML-powered FX platform.
- Based on the instructions, the FX interface will convert FIAT to XRP or XLM.
- A smart contract controlled by ML will execute the instructions.
- The FX interface will send crypto to the recipient. The XRP blockchain will take care of the immutability and verification process. Execution will be managed by smart contracts implemented by ML.
- The receiver will use the private keys sent by the sender and receive the funds in XLM or XRP tokens.
- The recipient can convert the crypto to the FIAT of their choice instantly or at a future date. ML-based smart contracts will take over execution in the future.
Rising market penetration of Ripple and Stellar
The world’s major economies are preparing to launch their own central bank digital currencies (CBDCs). However, many experts believe that instead of building CBDC infrastructure from scratch, central banks can use existing infrastructure to meet their immediate settlement needs.
According to a recent report, the Stellar Lumens blockchain could serve as the foundation for CBDCs around the world. Stellar Lumens CEO Denell Dixon recently announced that they are willing to work with war-torn Ukraine to launch their CBDC.
Additionally, Stellar Lumens along with Ripple’s XRP have become part of ISO 20022, making them suitable and appropriate for CBDCs. Furthermore, a Harvard University report states that CBDCs can work alongside stablecoins, and Ripple and Stellar can easily handle such transactions.
Furthermore, Tipple is already expanding its ODL solution to more than 40 countries. Therefore, it has an infrastructure that is primed to serve global economies. This is how Ripple’s XRP Ledger can work effectively with CBDCs around the world.
