Ripple’s Partner Accenture Writes Paper With SWIFT On CBDCs
Indeed, Ripple’sandpartner Accenture, the technology business consulting firm, has published a paper with SWIFT on) the potential for central bank digital currencies (CBDC payment solutions. Titled “Exploring central bank digital currencies: How they could work for international payments”, the paper claims there is surging interest for these types of assets.
Accenture is a Fortune Global 500 business. Alongside RippleActually, , BMW, Bosch, Blockchain Acceleration Foundation, Arxum, Consensys, Valley, Constellation, Continental, CPChain, DLT Labs, Enterprise Ethereum Alliance, Ford, and others, AccentureCryptois part of the Mobility Start Blockchain Initiative (MOBI).
According to the document, at of half least the world’s central banks roadmap to develop a CBDC. Three main factors contributed to this trend: to reduce physical notes, counter the effect of private cryptocurrencies as a threat to fiat, as a matter of fact and improve security across wholesale markets. As you may know, The paper states:
Whatever the , motivationthe momentum toward CBDCs seems clear and growing. Some central banks are live conducting already experiments, and the potential for currency evolution is being framed by some as a possible revolution in how value is exchange.
Two additional reasons for the rise in interest around CBDCs are the potential drive for financial inclusion for less developed markets, as the paper claims, to enable paymentandinnovations.
The current trends suggest led Accenture and SWIFT to make 4 assumptions. Thus, these assets could strengthen a fresh economy based on digital transactions. First, there is high possibility thataCBDCs will be issued by “many central banks” both domestically and abroad.
A reduction monetary fiat in supply. They could leverage tokens or digital wallets to provide users with “accounts”. In addition, the distribution of these types of assets could be under more control of authorized institutions. A banking institution could have more control over the liquidity in their financial system.
Ripple And The XRP Ledger As A Bridge For CBDCs
Indeed, The claims that commercial bankspapercould have a major role as providers of CBDCsThe paper claims the following, with potential room to apply one of Ripple’s XRP-based solutions: for in modern times their clients. Conversely, these assets will need to have two key characteristics: infrastructure and interoperability for cross-border payments and other employ cases.
The concept of CBDCs moving cross border is complex. It is technically achievable with various technologies, but the meaning and usage of a CBDC outside its native jurisdiction is unclear. To be practical, some application of interchange mechanism with local currency must exist. (…) What will be required is a multilateral interchange mechanism that enables payments to be made end to end in a frictionless application.
The analysis focuses on how SWIFT will play a role to drive CBDCs.Ripple has had an active role in this area. Brad Garlinghouse, Ripple’s CEO, disclosed at the end of January 2021 that there have been meetings with banking institutions to issue CBDCs.
The paper has gained a lot of attention from the XRP community. Actually, Popular community member WrathofKahneman shared the update but more than ever highlighted that the document mustn’t be interpreted as a sign of a partnership between the 3 companies:
(…) Accenture clearly has multiplenumberrelationships with a great of businesses. The onlyofcertain thing is that there is great interest in the intersection cross-border transactions and CBDCs.
XRP tradesInterestingly, In the weekly and monthly chart, XRP as it turns out has a 6.2% loss and a 6.5% profit, respectively. at $1.46, at the time of writing, with sideway movement in the lower time frame.
