Ripple will not have the dollar, world reserve currency, in its CBDCS network.
CBDC are not dead: Europe still believes in them.
Yesterday, January 23, an executive order of the president of the United States announced the complete prohibition of the CBDC and the immediate termination of all the activities already initiated related to them. In May 2023, the company behind XRP, Ripple Labs, which is based in California, San Francisco, launched a platform that allows governments, central banks, financial institutions and other state entities to issue its digital currencies (CBDC).
The new regulatory climate in the United States regarding these digital currencies could have transcendence for Ripple, both at regulatory and technological level.
As cryptootics, the Central Bank Digital Coins (Central Bank Digital Currencies) They are digital versions of the traditional currencies issued by the central banks of the countries. Unlike cryptocurrencies inspired by decentralization values, such as Bitcoin, CBDC are backed, regulated and centralized by national governments.
In a nutshell, they are a form of fiduciary money replicated digitally to represent the dollar, yuan, peso, ruble or any national currency.
The prohibition of CBDC in the United States proposes a challenging environment for Ripple. This veto implies that the most important international currency in the world, used as a reserve of international value, the US dollar, It will not be part of the system that unites governments and their digital currencies. In a nutshell, Ripple will not be able to offer international trade with US digital dollar, which considerably dilutes the attraction of its platform.
This prohibition also means that the American population will not be able to participate as retail in the CBDC Private Ledger. It is not a small thing, taking into account that the United States contributes the largest capital worldwide to cryptocurrency markets.
Along the same lines, other countries where political libertarianism and technological progressivism have an important presence could replicate Donald Trump’s actions in the United States, and prohibit CBDC. However, the potential impact of these decisions for the Ripple CBDC platform would be proportional to the importance of the currencies of these countries for international trade.
On the other hand, The executive order against the CBDC will make even more attractive the use of stable cryptocurrencies, At least in the United States, and will extend the gap between both Fíat currencies. Thus, the technological position of the stablcoins is reinforced, because they are currencies created by the private sector that, as a whole, and although they are perfect in this regard, they work according to degrees of decentralization greater than the digital currencies of central banks.
Ripple is an important actor in the CBDC area because this company created an alternative and privatized version of its distributed book, XRPL, so that central banks and governments They can make digital transactions and businesses on that network, using XRP as a cryptocurrency to pay fees.
Likewise, this platform provides tools and functions to CBDC issuers, so that they can “manage the full life cycle of their FÍAT -based digital currency.” This cycle includes coinage, distribution, refund and destruction of the asset.
This implies that governments adopted by CBDC could implement their economic policies and control the inflationary cycles of their currencies through the platform for central banks offered by Ripple.
It should be noted that CBDC platforms, which are still under construction and have not been massively adopted by governments, constitutes only one of the markets in which Ripple participates.
The company still has other niches where to offer services. For example, of international remittances through an application of payments on the XRP network, called Ripple Payments.
Ripple too competes in the cryptocurrency market anchored to the US dollar using their own stablecoin, Rlusdas cryptonotic reports. It should be noted that this prohibition does not affect XRPL, the open and public network that works with a degree of decentralization. That affects only the private network based on XRPL technology, which was created by Ripple for CBDC trade, which is inaccessible to the public for now.
Although Donald Trump’s executive order against the Stablcoins touches one of Ripple’s businesses, and collaterally to his cryptocurrency (XRP), the good consideration for CBDC has not fully declined in the world, especially in Europe.
According to a European Central Bank reportin the second quarter of 2025 it will end The construction of the architecture that will allow the deployment of the digital euro.