Central Bank of France considers using Ripple and XRP as a potential platform for launching the digital euro, says the Professional accounting organization CPA Australia in a report.
Bitcoin, Ethereum rejected
CPA Australia has published a report called the “Central Bank Digital Currencies (CBDCs): A Comparative Review.” The document has disclosed that the French Central Bank has been discussing Ripple and XRP as a potential basis for issuing the digital euro.
The two biggest cryptocurrencies have been reconsidered as well. Nevertheless, the report considers Bitcoin „a too risky means of Exchange. “ As for Ethereum, it is decentralized and cannot be controlled by any government.
The document states that the world quickly enters a new technological development period due to the recent global pandemic. It has spurred the acceptance of digital currencies and online payments (cash can spread bacteria from one holder to another).
XRP is considered as a better and centralized alternative
The report considered Ripple as an “alternative platform to Ethereum” and XRP as a coin that runs on its own ledger, stating that “Ripple does not operate on a blockchain network per se” but has its own ledger for performing transactions—presumably, XRPL.
Multiple banks trust ripple as a model for CBDC due to its high centralization.
Ripple and XRP have the trust of many banks as a model for CBDCs because:
- it is highly centralised
- is based on a permissioned network where only certain network nodes can validate transactions, as opposed to decentralised and permissionless Bitcoin and Ether.
France’s central bank, Banque de France, has openly discussed Ripple/XRP as a possible platform for Europe’s central digital currency.
We are not sure if this is still a possibility since there is an ongoing dispute with SEC.