The French central bank is considering the use of Ripple and XRP as potential platforms for issuing digital euros.
French Central Bank Rejects Bitcoin and Ethereum as basis for Digital Euro
This development was revealed by accounting firm CPA Australia in a report published last week. The report titled, “Central Bank Digital Currency (CBDC): A Comparative Review”. shows that the French central bank has discussed Ripple and XRP as a possible basis for introducing a digital euro.
The two largest cryptocurrencies were also examined. However, the report found that Bitcoin was an overly risky method of transaction. Ethereum is decentralized and cannot be controlled by any government.
However, according to the report, the Australian government is still considering rolling out a CBDC plan in the Ethereum community.
The document states that the world is rapidly entering a new phase of technological development due to the recent global pandemic that originated in China. It stimulated the adoption of digital currencies and online payments instead of transferring the germs from one holder to another.
XRP as a Better Alternative for Banks
The report states that Ripple is an “alternate platform to Ethereum.” XRP is a coin that runs in this ledger, and that “Ripple itself does not run on a blockchain network,” but through its own ledger Execution of transactions under the assumption of XRPL.
The author also mentioned that because Ripple is highly centralized, it is trusted by many banks as a CBDC model.
“Ripple and XRP enjoy the trust of many banks as a model for CBDCs because it is highly centralized and is based on a permissioned network where only certain network nodes can validate transactions, as opposed to decentralized and permissionless Bitcoin and Ethereum.”
The document also indicated that the French central bank was discussing XRP and Ripple as potential platforms for making a digital euro.
“France’s central bank, Banque de France, has openly discussed Ripple/XRP as a possible platform for Europe’s central digital currency.”
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