1/10: I want to share some thoughts on the recent interview with @RippleXDev VP James Wallace, specifically regarding the idea of a cloned XRPL for CBDC's and why this is rather genius and great for XRP.
No, it's not time for a thread, it's time, as @xrp_mami says, to f*ck faces
2/10: James mentions "a private instance of an existing decentralized ledger is a good way to go". I want to emphasis, before I go on, that this is not a secret ledger, nor a hidden ledger, nor a bad thing for XRP.
It is the way for XRP to have its cake and eat it too.
3/10: So, he is referring to a fork or clone of XRPL. This is a separate ledger that has the exact same characteristics of XRPL, but is centrally controlled by a central bank. Each central bank could have their own XRPL clone.
Before you say, but this won't utilize actual XRP!..
4/10: We need to understand that CBs are either willing to issue CBDC's on public blockchains or they are not. Most likely, they are not, for obvious reasons.
But by RippleX designing a cloned version of XRPL for them, it solves two problems:
5/10: 1. Central banks are happy and willing to go forward because they get the amazing attributes of the XRP ledger but they also control it.
2. These CBDC's will be fully interoperable with the actual XRPL.
Yes, this means XRP will be in the middle of all CBDC's.
6/10: This allows CBs to control their monetary policy, and when they want to transact with another CBDC, BTC, commodities, any IOV asset, etc, they will easily and seamlessly use XRP to bridge (most likely with ILP as well).
This is genius.
7/10: The biggest hurdle was always getting a CB to use a public blockchain for issuance. By creating their own private XRPL fully interoperable with actual XRPL, Ripple is ensuring that the future of money, from the CBs down, will go through XRPL.
Yeah, all the money.
8/10: Also, we must understand that BTC is amazing, but is about as necessary as a Picasso on your wall. It has immense value, and there is a market for it, and it is wonderful, but if BTC ceased to exist society would continue on.
9/10: Now, a bridge asset strategically placed at the center of the new financial system is very necessary. Like oil, without it, society stops functioning well. This type of massive utility will make XRP necessary AND is an amazing store of value.
Kind of the whole ball game.
10/10: To summarize, Ripple has found a sweet spot to work with central banks, and are pursuing an adoption method that works for everyone. Without a $10B company with amazing BD, devs, and resources, this would not be possible.
This is a long game.
Plan accordingly.
11/10: After today's Ripple blog post, I would like to add:
Bc these private CBDC ledgers are all forks of XRPL, they can easily interoperate with Flare Network, bringing smart contract capability to those CBDCs the same way Flare plans to bring utility to XRP.
12/10: Imagine CBDCs seamlessly moving from their private ledger to Flare Network, thereby unlocking smart contract potential for them too...
They can also be traded freely in their own DEX (XRPL has built-in DEX) or freely in XRPL DEX...
True interoperability of networks IMO.
13/10: Now possible:
- CBDC from bank1 can trade with CBDC from bank2 within the CBDC ledger of bank1
- CBDC from bank1 can trade with CBDC from bank2 within the CBDC ledger of bank2
- CBDC from bank1 can trade with CBDC from bank2 or any other currency within the XRPL
14/10: - All CBDCs can freely move from one network to another using Flare Network which also brings smart contract capability to those CBDCs.
You can of course also trade in Flare network with any currency supported by Flare network but you would be better off moving to XRPL...
15/10: ...to trade because XRPL is able to contain ALL CURRENCIES in the world.
That's why XRPL will have to be at the center of it all, no matter what (if these private ledgers are adopted.)
16/10: This network will utilize XRP for settlement.
It will sit, in the middle, as a bridge currency.
Ripple owns a lot XRP for a reason.
Yep, “we’re just getting started.”
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