Yesterday, the International Monetary Fund (IMF) revealed that it is developing a framework for CDBCs; today, the XRP army uncovered an IMF paper dated March 2023 in which Ripple is mentioned as a possible solution. Remarkably, ties have existed between the IMF and Ripple Labs for so long.
The International Monetary Fund is reportedly working on a CBDC platform to facilitate cross-border transactions, as reported by Reuters.
She also advocated for a worldwide regulatory framework for digital currencies to be agreed upon by the world’s central banks. Furthermore, she cautioned that cryptocurrencies might fill the void if a standard CBDC platform is not established.
Georgieva emphasised the speed with which CBDCs are being established in countries all over the globe. According to the IMF director, “about 10 have already crossed the finish line” among the 114 central banks testing and researching CBDCs.
The IMF paper highlights two significant advantages of establishing a marketplace for tokenized money: interoperability and cheaper foreign currency trading.
The sending of funds to a receiver, whether locally or internationally, is the interoperability aspect. The component dealing with converting one currency into another must be seen in the broader international setting. There are three potential marketplace models discussed in the research.
Ripple’s XRP is an example of a private settlement asset and marketplace. In contrast, the Stellar Foundation and, more recently, the DeFi networks are examples of open-source marketplaces. Strike, which uses Bitcoin and the Lightning Network, is an example of a marketplace and settlement asset based on unbacked cryptocurrencies.
However, the authors argue that the public method (like Ripple’s) offers significant benefits since a privately controlled organisation may run it. The centralization of participation and liquidity supply coordination issue would be solved, and unambiguous and trustworthy governance and operational stability would be established. Third, complete compliance with all regulations pertaining to financial security would be guaranteed.
The partnership between Ripple Labs and the IMF dates back a surprising number of years. Ripple was invited to join the High-Level Advisory Group on Fintech, according to a presentation by Sagar Sarbhai in November 2018.
Furthermore, the XRP army had uncovered other recordings of earlier years when Ripple was given the opportunity to present at IMF conferences.
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