Bank of France Likely to Prefer XRP over Bitcoin and Ethereum

Banque de France, the central bank of France, has reportedly discussed XRP and Ripple for the launch of a central bank digital currency (CBDC). The central bank is planning to prefer XRP over Bitcoin and Ethereum.

According to a report published by CPA Australia, Ripple and XRP gained the attention of many central banks around the world due to the centralized nature of the network. The report also highlighted the efforts made by the Reserve Bank of Australia, ECB, PBOC, and the Federal Reserve in the issuance of a central bank digital currency.

Ripple recently announced that the company is currently testing a private version of the XRP Ledger to facilitate global central banks in the issuance and management of CBDCs. The company also mentioned that the arrival of the world’s first CBDC is inevitable.

“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. Ripple also allows the creation of new currencies and Ripple developers can decide the timing and quantity of supply in a similar way to current central bank operations,” the report from CPA Australia states.

Growth of XRP

Despite the SEC’s lawsuit against Ripple in December 2020, the company reported significant growth in the last few weeks. During an interview with Reuters, Ripple CEO Brad Garlinghouse said that the activity of XRP liquidity has grown significantly outside the United States. He added that Ripple is growing in Asia. XRP price took a major hit after the SEC’s lawsuit but the cryptocurrency has gained more than 100% since the start of 2021. Despite the uncertainty regarding the status of XRP in the United States, the trading volumes of the world’s 7th largest digital currency are growing around the world. XRP currently has a market cap of more than $21 billion.

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