XRP, Ethereum, Bitcoin: Who Will Lead the CBDC Race?

A 44-page report commissioned by the Australian CPA delves into the development of central bank digital currencies around the world, exploring viable blockchain candidates for hosting CBDCs in the coming years, while also evaluating the three most traded cryptocurrencies: Bitcoin, Ethereum, and XRP.

In a section titled “XRP – Ripple’s Digital Token,” the CPA report states, “Ripple will be an alternative platform to Ethereum, with XRP being the primary currency used on this platform, facilitating payments like any currency or card. Ripple has its own patented technology, the Ripple Protocol Consensus Algorithm (RPCA), to verify transactions. The idea of ​​Ripple and XRP as a CBDC template is currently being viewed favorably by many banks because it is highly centralized and based on a permissioned network where only specific network nodes can verify transactions, unlike the decentralized and permissionless Bitcoin and Ethereum.”

The report also describes Bitcoin as too unstable a medium of exchange and value storage, while Ethereum is a completely decentralized blockchain-based software platform that is not controlled by any country. The article also writes that the Reserve Bank of Australia has issued a statement saying that it is considering running a CBDC project on the Ethereum network.

The article also mentioned that the Bank of France is interested in exploring the possibility of Ripple as a hosting platform for CBDC in Europe. According to BitPush on April 2, 2020, the Bank of France is analyzing how to develop central bank digital currency with the help of existing cryptocurrencies. In the latest internal report, the Bank of France emphasized that Ethereum (ETH) and Ripple (XRP) can be used to issue tokenized central bank digital currency. (BitPush)