Recently we have witnessed an increased interest in the concept of the central bank digital currencies (CBDCs). Now the Emi Yoshikawa, Senior Director, Global operation, Ripple in an interview with FxCoin (a financial portal in Japan), gave detailed and insightful information about XRP’s complementary nature to CBDCs and stablecoins. According to the top executive, there is no competition between the XRP and CBDCs, and in fact, XRP should be considered as complementary to the concept of CBDCs.
Stressing on the fact that XRP should be seen in the light of a bridge between transactions happening between different nations, Yoshikawa ruled out any competition between XRP and CBDCs. When specifically asked about whether XRP is a competitor to stablecoins and CBDCs, Yoshikawa said that she didn’t see any conflicting areas between these alternative forms of currencies.
Specifically mentioning the concept of on-demand liquidity (ODL) and its advantage over the traditional banking system, Yoshikawa focused on the benefits that ODL brings to the table by adopting and activating the model totally driven by the demand. Elaborate the plans of the company to open new corridors of the payment; the top executive said that the company is in the process of taking the regulatory clearances and will soon come up with a number of new partners to make sure its ODL service will cover a substantial portion of the population in the future. The company is also focusing on various inter ledger technologies while regressively testing new use cases for the XRP.
Exhorting technology developers in Japan to get familiar with XRP, Yoshikawa said that the company had started a movement within its Japanese community that encourages the developers to come forward and develop new services with the help of XRP ledger.
It’s encouraging to listen from the top executive of the Ripple about the complementary nature of the XRP rather than taking a viewpoint of competition with CBDCs and stablecoins. In sum, the future success of the XRP will depend upon its ability to increase the number of use cases and how many developers it will manage to get on board to expand its community.