The World Economic Forum (WEF) names Ripple’s XRP as the most relevant cryptocurrency in the rising central bank digital currency (CBDC) space.
According to the report, the WEF says that central banks and government agencies are looking at the potential of CBDCs to sort perennial global financial issues. The Geneva-based multinational firm also made a clear difference between CBDCs and cryptocurrencies.
The firm said,
CBDC differs from other forms of digital or virtual currencies, including cryptocurrencies such as Bitcoin and ‘stablecoins,’ which are not issued by central banks or typically considered legal tender.
Ripple says that central banks around the space are locked in an arms race to develop their own CBDCs. The payments startup highlights that by “ensuring a level of interoperability,” central banks can leverage XRP to support and facilitate the use of CBDCs.
XRP is faster, less costly and more scalable than any other digital asset, making it the ideal instrument in bridging two different currencies quickly and efficiently.
As a matter of fact, XRP is one of the most popular cryptocurrencies in the market. It presently stands in fourth place. According to Coingecko, XRP’s price is changing hands at $0.24, as of press time.
Moreover, WEF draws a clear line between the two forms of digital assets. Yet, Bitcoin continues to dominate the market as it surpasses gold and other virtual assets in terms of trading value.
Despite this, WEF claims that Ripple (XRP) is the most relevant cryptocurrency in the CBDC space for inter or inter-bank settlements and payments. “We will continue to work with central banks globally to create an environment where CBDCs and independent digital assets co-exist and complement each other,” Ripple further explains.
The World Economic Forum is an independent multinational organization committed to improving the state of the world. WEF, along with some of the world’s major central banks, has created a CBDC policymaker toolkit.