Senior Executive of Ripple claims, the world’s third-largest cryptocurrency in terms of market capitalization, XRP is not competing with the national digital currencies like digital yuan. The Senior Director of Global Operations at Ripple, Emi Yoshikawa, stated that XRP is not competing with stablecoins or Central Bank Digital Currencies (CBDC).
She further quoted,
She also talked about Ripple’s flagship settlement product, ODL, also known as xRapid, designed to make cross-border payments efficiently and deduct operational costs. She further highlighted that ODL aims to remove pre-funding required for initiating the cross-border payments.
Both stablecoins and CBDC have similar fundamental objectives; the recent CBDC initiatives like digital yuan are potential threats to SWIFT in terms of transaction speed as per the Ripple news. Stablecoins are designed to speed up the time of settlement and reduce the cost of payments. Banks across the globe have noticed that CBDC’s have the potential to reduce operational costs.
