In a recent interview in Japan, Ripple’s Senior Director of Global Operations said that XRP does not compete with CBDCs or stablecoins.
In a recent interview with FXcoin, Ripple’s senior director of global operations, Emi Yoshikawa, said XRP is not competing with other centralized or decentralized cryptocurrencies that support the current financial system. Instead, they are creating synergy for the future.
“The role of XRP is not to compete with stablecoins or CBDCs”
When asked whether cryptocurrencies have any chance of surviving when more stablecoins start to emerge, as well as CBDCs from countries’ central banks, Yoshikawa, revealed that XRP was not meant to be a competitor to these digital assets.
It is the opposite, she said. XRP is complementary in this case, since XRP is not struggling to make centralized banks and financial institutions disappear from the picture, as Ripple CEO Brad Garlinghouse explained earlier.
Yoshikawa believes that stablecoins, CBDC and XRP will be working in synergy and will solve current liquidity problems across the bridge of various currencies, including cryptocurrencies.
Create new use cases for XRP
Despite the fact that ODL is popular today, the company is busy looking for more new use cases for XRP and XRP Ledger.
Ripple is doing this through Xpring, its investment arm.
Ripple plans to open more ODL corridors
ODL (On Demand Liquidity), as Yoshikawa explained, allows financial institutions to eliminate the pre-financing system, in which they must open accounts in a remittance country where they hold a necessary amount in local currency to pay recipients.
Through ODL, operators only convert the currency that will be sent to XRP, which takes a few minutes to reach a cryptocurrency exchange in the destination country, and then the XRP is converted into the local currency and paid to recipients.
Blockchain giant Ripple plans to create more ODL corridors until the end of this year – in addition to those you already have in Europe, Mexico, Australia and the Philippines.
One of these corridors – Bitso Mexico’s exchange – even received a direct investment from Ripple in 2019 and is its remittance partner along with the giant MoneyGram.