Tag: CBDC

CBDC is generally defined as a digital liability of a central bank that is widely available to the general public. Today in the United States, Federal Reserve notes (i.e., physical currency) are the only type of central bank money available to the general public.

  • US law to prevent issuance of a CBDC

    US law to prevent issuance of a CBDC

    CBDC

    A new US law aims to prevent the issuance of a CBDC. The creator of the draft is a well-known crypto advocate within US politics. Among authorities, the digital central bank currencies are among the current trending topics.

    US law to prevent issuance of the digital central bank currencies

    A new US law aims to prevent the issuance of a CBDC. Republican MP Tom Emmer wants to fulfill this wish for himself and his supporters. Yesterday he therefore introduced the “CBDC Anti-Surveillance State Act”. Its title translates into German as CBDC Anti-Surveillance State Law .

    Today I introduced legislation to stop efforts by unelected bureaucrats in Washington DC to deprive Americans of their right to financial privacy.

    Explains Emmer on Twitter. According to him, the decree should fulfill three different tasks. On the one hand, it prohibits the US Federal Reserve from issuing a CBDC. On the other hand, it prevents the Fed from influencing fiscal policy. In this way, Emmer wants to keep her influence on the country’s economy low.

    In addition, all CBDC projects of the central bank are to be made transparent to the US Congress and the public.

    Any digital version of the dollar must uphold our American values ​​of privacy, individual sovereignty, and free enterprise competitiveness. Anything else opens the door to the development of a dangerous surveillance tool.

    Execute Emmer. In doing so, he fully agrees with the crypto scene’s criticism of digital central bank money. Here, a CBDC has long been seen as a dystopian surveillance tool, as it would give the relevant authorities absolute power over the monetary system.

    The Republican is convinced that freedom must be actively protected in order to promote further innovation in the USA.

    “After all, the US is not a technological leader because we impose regulations on innovation, but because we allow technology to thrive.”

    CBDC in the US remains a contentious issue

    While many countries around the world actively support CBDCs, the opinion of the authorities in the USA is strikingly ambiguous. A CBDC in the US remains a contentious issue. Even among the executives of the US central bank, critical voices are being raised.

    The well-known FED President Neel Kashkari is also one of the critics of a CBDC. A central bank digital currency is finding support primarily among supporters of the Democratic Party. Crypto enthusiasm can be observed particularly in the Republican Party.

    Republican Andy Biggs has already publicly announced that he will support his colleague Emmer’s draft. Emmer had already proposed a similar law in January 2022. At the time, his party was only a minority in Congress. The law failed. Republicans currently make up the majority of MPs.

    The law is not confirmed. It would first have to be passed by Congress and then accepted by US President Joe Biden.

    There are no plans to introduce a CBDC in Switzerland. The first tests have been in place since 2020. The Swiss National Bank is currently convinced that the downsides of a digital franc predominate. Only months should pass before the introduction of a digital euro .

  • Ripple technology becomes the base layer for these CBDCs and stablecoins – will the XRP price rise?

    Ripple technology becomes the base layer for these CBDCs and stablecoins – will the XRP price rise?

    Ripple

    Stablecoins are a focus area for applications on the Ripple ledger, and several projects are currently underway. The island state of Palau in the Pacific also wants to use XRP as the basis for its digital central bank currency.

    For several months, development teams in several countries around the world have been developing digital currencies that use the XRP ledger as a technology platform. Veteran crypto expert Wrathof Kahneman tweeted a list of stablecoin projects that could see long-term success on the XRP ledger. Among his favorites are Kahneman Stasis, Stably and Novatti.

    Not only do they use the XRP ledger as a basis, but they are also in active partnership with Ripple in terms of their other technology and marketing. Earlier last month, Stably — a US-based Web3 payments processor — announced that it would be issuing the Stably-USD (USDS) on the XRP ledger. Per the announcement, Stably will receive the necessary technical support from Ripple to integrate USDS into the XRP ledger.

    Also, Stasis, a leader in the development of euro-backed stablecoins, announced the issuance of the EURS stablecoin on the XRP ledger. Stasis is also getting technical support from Ripple to integrate EURS into the XRP ledger before the end of this year.

    In June 2022, South African fintech company XAGO launched its stablecoin XUS on the XRP ledger. The XUS stablecoin allows XAGO clients to save on their USD and USDC transactions. This stablecoin will also soon be found on the mainnet of the XRP ledger.

    Greater acceptance of Ripple technology

    Further, Germany-based digital payments company Novatti Group Limited recently announced a partnership with Ripple to issue an Australian dollar-backed stablecoin, the AUDC. This should also be available in the XRP ledger soon.

    Finally, the Pacific island nation of Palau is also making strides in launching its central bank digital currency (CBDC) on the XRP ledger. Palau is also working with Ripple to explore the potential of using its CBDC on the XRP ledger.

    The development of the Palauan central bank currency started last November. The partnership’s initial focus was on creating a US dollar-backed digital currency for Palau and developing strategies for cross-border payments.

    These developments could also have a positive impact on the XRP price. Although XRP is down 1.81% in the last 24 hours, the price is still above $0.5 and is one of the top performers among altcoins over the past week. In the past week it was up almost 18%.

  • The Ripple case seems to be going better than expected: Coinbase CEO

    The Ripple case seems to be going better than expected: Coinbase CEO

    Ripple
    Source: Visual Generation – Shutterstock

    Brian Armstrong, CEO of the US’ largest crypto exchange by daily traded volume, Coinbase, thinks the Ripple lawsuit is faring quite well. The cross-border payments firm has been in an almost year-long legal faceoff with the US Securities and Exchange Commission (SEC) for allegedly selling unregistered securities.

    However, Armstrong says it has now dawned on the regulator that its legal altercation with Ripple is an indirect attack on consumers. Armstrong tweeted;

    The Ripple case seems to be going better than expected. Meanwhile, the SEC is realizing that attacking crypto is politically unpopular (because it harms consumers),

    He added that“The irony is that the people they are supposedly protecting are the ones attacking them.

    Ripple and SEC lawsuit case

    Despite the ongoing proceedings against it, Ripple has made notable efforts in expanding its service coverage globally. The San-Francisco-based firm has collaborated with a number of countries and organizations to enable low-cost cross-border remittances. These include Qatar, UK-based mass payout yysolution, Paydek, and Middle-East’s Pyypl. Several countries are also creating their central bank digital currencies (CBDCs) based on Ripple’s CBDC solution. The likes are Bhutan and the UK.

    Moreover, Ripple is working on an offline digital payment prototype in addition to a major upgrade for the XRP Ledger. Outside of payment technologies, Ripple has partnered with Nelnet Renewable energy to fund solar projects in the US.

    As for the case, Ripple’s legal team is assertive that no settlements will take place with the regulator. This is so unless the commission explains how the Howey test was applied to XRP, an explanation that so far has only been conflicting and confusing. In the latest court proceedings between the two, Ripple rejected the SEC’s attempts to drag on expert discovery into the new year.

    XRP price development

    On Jan. 19 this year, Coinbase suspended trading of XRP on its platform in the wake of the SEC lawsuit. This shrunk the value of XRP, dropping from $0.30 to $0.19 following the announcement. Early last month, a rumor spread on social media sites that Coinbase has relisted the token. However, the exchange soon debunked the story saying it was brought on by a technical error in its systems.

    As previously announced, Coinbase has suspended trading in XRP. Due to a technical issue, XRP was temporarily viewable on the Coinbase Pro mobile app for some customers but was not tradeable.

    Nonetheless, XRP has retained its top ten ranking according to cryptocurrency market cap. Additionally, Mike Novogratz, CEO of Galaxy Investment Partners, noted that the token’s price has tripled since the SEC filing. XRP was trading at around $0.56 in December when the case was filed. Our data shows it was trading at $1.12 as of this writing.