A recent post by crypto researcher SMQKE has stirred debate within the digital asset community regarding the role of XRP in Ripple’s private central bank digital currency (CBDC) ledger.
RippleNet's Structure and XRP's Role
In response to SMQKE’s statement, an X user, Juliett Echo Tango, provided a detailed counterargument. She emphasized that XRP is only used in one of the three products within RippleNet and that banks favor solutions that do not require cryptocurrency exposure. RippleNet comprises multiple products, with only one—previously known as xRapid—utilizing XRP for on-demand liquidity.
Regulatory and Financial Concerns
Her response also referenced an analysis from Grok, the AI tool developed by X, which explains why institutions have preferred xCurrent due to regulatory uncertainty and XRP’s volatility. Banks must comply with AML and KYC regulations, while XRP's legal classification remains contentious.
Adoption Challenges and Institutional Preferences
Beyond regulatory concerns, the ease of integration with existing systems affects institutions' preferences. xCurrent was designed to fit into traditional banking infrastructure, minimizing complexity and operational risk.
Debate over XRP's role in Ripple's CBDC private ledger continues as different parties provide supporting and opposing arguments regarding the cryptocurrency's deployment. The extent of XRP usage remains an open question, hinging on flexibility.
