Guess what? Ripple Partners with 10 Governors on CBDCs!

• Ripple is partnering with 10 governments to develop CBDCs using its blockchain technology.
• Ripple introduces Real USD (RLUSD) to stabilize transactions within the XRP Ledger and Ethereum.

Ripple CEO Brad Garlinghouse did disclosed an important partnership to create the Central Bank’s digital currency (CBDC) with ten different governments. These collaborations seek to include Ripple’s blockchain technology to improve the security and efficiency of financial systems everywhere.

While the specifics are still mostly unknown, the project represents a significant step forward in the use of blockchain technology for national digital currencies.

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Ripple works with governments on CBDCs

Ripple’s involvement with several governments is an important step in the digitalization of the banking sector. According to Garlinghouse, these government CBDCs will function as stablecoins, which are intended to keep their value constant compared to conventional currencies.

Even if not all partnerships are made public, the project involves the transition to more effective and secure payment systems. Ripple is expected to improve cross-border transaction efficiency, financial transparency, and operational efficiency.

Introducing the Real Dollar (RLUSD)

Aside from its government alliances, Ripple is preparing to launch Real USD (RLUSD), its stablecoin, echoing previous CNF coverage. Presented at the latest XRP Ledger Community Summit in Amsterdam, this new stablecoin seeks to stabilize transactions within the XRP Ledger by establishing a direct connection to the US dollar.

With RLUSD accessible on Ethereum and XRP Ledger, its use across different blockchain platforms will be expanded.

Through the introduction of RLUSD, Ripple hopes to increase its market share by attracting a broader customer base that includes both blockchain enthusiasts and financial industry experts looking for reliable alternatives for digital transactions.

This action fits with Ripple’s broader goal to innovate within its network and increase its impact and utility across the broader blockchain ecosystem.

XRP’s Regulatory Challenges

While these are encouraging developments, Ripple still has difficulties, especially with regulations. The compliance of the On-Demand Liquidity (ODL) service is the subject of a legal battle the company is currently having with the US Securities and Exchange Commission (SEC). The SEC has expressed concern that Ripple ODL’s sales methods may violate particular laws, an accusation disputed by Ripple.

Brad Garlinghouse is optimistic about the future, however, seeing signs of a changing regulatory landscape in recent SEC approvals of Ethereum and Bitcoin ETFs. In the near future, perhaps 2025, he thinks these advances could open the door to an XRP ETF.

At the time of writing, XRP it is valued at approx $0.4894on 2.12% in the previous 24 hours, according to CoinMarketCap data. However, it shows a bearish, bearish position 1.03% during the last seven days.

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