The Covid-19 pandemic has accelerated the adoption of Ripple solutions by banking institutions. Ripple is meeting with central banks around the world to discuss CBDC issuance strategies.
Ripple General Manager Asheesh Birla participated in an event with PaymentsSource senior editor John Adams to discuss Ripple’s progress on collaborations. Birla explained that 2020 marked a shift in how Ripple‘s partner institutions and customers view digital payments.
The Covid-19 pandemic has become a catalyst for the adoption of Ripple’s solutions. The RippleNet Cloud has been one of the most widely adopted by banking institutions, according to Birla. In this context, he admitted that without the problems the pandemic brought with it, acceptance would have grown to such an extent within about 10 years. Birla said:
People are realizing the benefits they did not realize in the past. They can use the staff and their resources to invest in other things, to invest in technology, to invest in modernization. They don’t need that staff to run an on print solution.
Ripple’s partners have seen “an explosion” in their customers’ use, according to Birla, of digital payment solutions. Ripple’s General Manager said the company’s solutions are moving beyond payments into lending, credit lines, and debt.
We feel we can deliver an excellent customer experience for our banking partners and financial institutions. People are relying on us to see what’s in the future and bring it to them as we solve the security and regulatory issues (…). We’re on top of it, we’re ahead of the curve.
CBDCs on the XRP Ledger
Later in the event, Birla delved into the requirements their customers have had and the new solutions they have developed based on institutional requests. One of Ripple’s focuses for 2021 will be central bank-issued digital currency (CBDC) projects. Birla confirmed that they have had meetings with central banks about these projects and added:
(CBDCs) will be a major acceleration for the adoption of Ripple’s technology. We are going to be there. We are meeting and currently discussing strategy with various central banks around the world. Super open to partneships with companies like Ripple to help them solve aspects of the payment points there.
As CNF reported a few days ago, Ripple’s CEO Brad Garlinghouse said the company will focus on developing protocols that support direct exchange of CBDCs over the XRP Ledger using the token XRP as a “bridge currency.” Meanwhile, the company faces a U.S. Securities and Exchange Commission (SEC) lawsuit that could define the future of XRP if it is classified as a security.
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