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Ripple Supports Central Banks via Private Version of XRP Ledger

Ripple Supports Central Banks via Private Version of XRP Ledger

Ripple recently advocated that the company is trialing a private version of the XRP Ledger to support central banks to issue CBDCs. The company stated that CBDC private ledger assists in payments. As per the official announcement, the CBDC private ledger development took place on the same blockchain that powers the XRP Ledger. Additionally, Ripple emphasized the increasing interest in CBDCs worldwide and suggested that the appearance of the world’s first CBDC is inevitable.

Ripple suggests that maximum blockchains are public ledgers and lack the privacy a central bank needs. Moreover, Ripple continued that a private ledger is a preferable choice for a central bank to issue and manage a CBDC. Over the past few years, the issuance of various digital currencies took place on XRP Ledger. RippleNet technologies and the inter-ledger suite of protocols will assist the private ledger in enabling use-cases like micro-payments. Moreover, the same consensus protocol employed by the XRPL transactions will verify the CBDC private ledger. It is 61,000 times more efficient. 

Ripple’s Private XRP Ledger to manage tens of thousands of transactions per second

Ripple informed that the private ledger will handle “tens of thousands” of transactions per second originally. It has the potential to scale to “hundreds of thousands TPS over time.” Nevertheless, central banks can utilize any of the publicly accessible blockchains to promote CBDCs. The firm considers that most Distributed ledger technology is not suitable for payments. Moreover, it cannot control the volume of transactions that a strong retail CBDC will need.

Moreover, the U.S. SEC filed a lawsuit against Ripple Labs and its executives in December 2020 for the unauthorized trading of securities in the form of XRP. Analysts state that the result of this lawsuit will be monumental for the crypto space. Moreover, it may pave the way for other cryptos to be regulated and viewed in the United States in the years to come. Recently, Ripple co-founder Chris Larsen and CEO Brad Garlinghouse have filed for a motion to dismiss lawsuits they have suffered over XRP.

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