Schwartz’s comments come on the back of circulating concerns that another innovative product from Ripple might be sidelining XRP.
David Schwartz, the CTO of Ripple, recently dismissed circulating rumors that the newly-launched Central Bank Digital Currency (CBDC) platform from Ripple would not use XRP. Schwartz confirmed that the platform could interact with XRP.
A report from Blockworks, a crypto media outlet, alleged that institutions using the CBDC platform would not use or interact with XRP. The report cited a “Ripple spokesperson” as the source, as no official public statement had confirmed this information.
However, taking to Twitter, David Schwartz debunked these claims hours after the report surfaced. He stressed that the CBDC platform is built using the same technology that powers the XRP Ledger and underscores the importance of the XRPL.
Schwartz confirmed: “It [the CBDC platform] has the ability to interact with XRPL and use XRP as a bridge currency for cross-currency and cross-border payments.”
The CBDC Platform reaffirms the significance of the XRP Ledger as it’s built with the same core ledger technology. It has the ability to interact with #XRPL and use XRP as a bridge currency for cross-currency and cross-border payments. https://t.co/SwD7gMN4cv
— David "JoelKatz" Schwartz (@JoelKatz) May 18, 2023
As previously reported by The Crypto Basic, Ripple recently launched a CBDC platform that will allow central banks and other financial institutions to develop their own digital currencies.
While the official press release from Ripple emphasized that the platform will leverage the XRP Ledger, the announcement did not explicitly mention using XRP. Notably, during the pilot of the CBDC platform in 2021, Ripple confirmed that the product would use XRP as a “neutral bridge asset.”
Concerns about Ripple’s Shift from XRP
However, the fact that the recent press release does not precisely mention the use of XRP has led to speculations that the newly-launched platform might sideline the asset. Schwartz’s recent remarks are an attempt to address these speculations.
Ripple’s business model typically leverages XRP as a neutral currency for liquidity and cross-currency swaps. The firm uses XRP for its RippleNet product, although individual institutions can choose any digital asset they prefer.
As highlighted by The Crypto Basic earlier this month, Navin Gupta, Ripple’s Managing Director for South Asia and MENA, disclosed that the firm only does cross-currency swaps using XRP. However, he emphasized that the technology is neutral and can be used with any currency of choice.
Due to recent developments, the XRP community is concerned that Ripple might be gradually tilting away from using XRP. Concerns emerged when Ripple sidelined XRP on its Liquidity Hub product that launched last month. However, the firm affirmed that it would include the asset when it gains regulatory clarity in the US.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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