CPA Australia published a report, which noted that France’s central bank is considering using Ripple as a potential platform for the digital issue of the euro.
France’s central bank wants to issue digital euro based on Ripple?
CPA Australia is a professional financial organization based in Australia. It has been operating since 1886 and employs over 166,000 employees in over 150 countries around the world.
She just published a report entitled “Central Bank Digital Currencies (CBDC): A Comparative Overview ”. From the document, we can learn, among other things, that the French central bank is analyzing Ripple and XRP. The project’s web and token could potentially be used as the foundation of the digital euro.
The organization’s experts also looked at the two largest cryptocurrencies. Bitcoin has been identified as “Too risky medium of exchange”. As for Ethereum, analysts say the project is decentralized and cannot be controlled by any government. This is an advantage for cryptocurrency enthusiasts. From the perspective of monetary authorities – a disadvantage.
Despite the above, according to the report, for example, the Australian government is considering launching the CBDC program based on Ethereum.
The document also says that the world is rapidly entering a new stage of technological development. The catalyst for change is the COVID-19 pandemic that began in China. It is the fear of the coronavirus that has driven more companies to adopt digital currencies and online payments while giving up cash. Coins and banknotes have come to be associated as objects that carry bacteria.
Ripple is the perfect blockchain for banks?
The report adds that Ripple does “Alternative platform for Ethereum.” However, it was also written that “Does not operate on the basis of the blockchain network per se.”
The authors also mentioned that Ripple is trusted by many banks due to the high centralization of the project:
Ripple and XRP are trusted by many banks as a model for CBDC because they are highly centralized and based on an authorized network where only certain network nodes can verify transactions as opposed to decentralized Bitcoin and Ether networks.
The document also stated that France’s central bank has already discussed XRP and Ripple as a potential platform for creating a digital euro:
France’s central bank, Banque de France, openly discussed Ripple / XRP as a possible platform for a central European digital currency.