Certified Practising Accountant Australia (CPA Australia) has just published a report in which it claims that the Central Bank of France is taking into consideration using Ripple and XRP as a potential platform in order to issue the digital euro.
CPA Australia is an accounting organization in, you’ve guessed it, Australia, which has been in business since 1886 and has over 166,000 employees in more than 150 nations.
The report bears the name “Central Bank Digital Currencies (CBDCs): A Comparative Review.” In it, it is mentioned that Bitcoin and Ethereum have also been analyzed, but the first cryptocurrency has been described as being too risky as a means of exchange, while the latter is decentralized so, by default, it doesn’t allow government interference.
The report does mention that the Australian government is taking into consideration starting a CBDC program for the Ethereum community.
Furthermore, the report talks about how the world is swiftly entering a new stage of tech development as a result of the current pandemic. This has led to the adoption of digital currencies and online payments to the detriment of cash, which has a higher chance of spreading bacteria.
The document mentions Ripple as being “an alternative platform to Ethereum” and that XRP is a coin that runs on its own ledger: “Ripple does not operate on a blockchain network per se.”
It is also reported that several banks look up to Ripple as a model for CBDC thanks to its high centralization.
“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 Ether.”
The report mentions that the Central Bank of France is already taking into consideration XRP and Ripple as potential platforms for releasing the digital euro.
“France’s central bank, Banque de France, has openly discussed Ripple/XRP as a possible platform for Europe’s central digital currency.”