According to James Wallis, RippleX’s vice president, Ripple is building the future financial system for the world’s leading CBDCs. Wallis spoke in a recent interview about the potential of CBDCs and XRP as a CBDC interoperability bridge currency.
Wallis transferred from IBM to RippleX, where he has been a member for over 17 years, as vice president of blockchain for the cutting-edge tech giant. He is currently at the head of central bank agreements and CBDCs in Ripple. He recently spoke to Rudolf Falat, the host of the “Voice of FinTech” podcast, for an interview.
Wallis believes blockchain technology will determine the future of payments. Currently, the payments industry is still facing many problems, including high costs and low speed. For cross-border payments, these barriers are getting worse and some money transfers can even take up to a week. Wallis said:
“At Ripple, we see the future of payments as an internet of value. The concept here is to move money around the world as easy as moving information around the world today. ”
Most central banks are currently over 80% interested in CBDCs, according to a survey by the Bank for International Settlements (BIS). Wallis is confident that they are the future of payments by giving central banks the opportunity to redefine payments.
However, central banks need to work on interoperability for the development of CBDCs. First, they must work with existing local payment systems such as mobile payments. In addition, they must enable cross-border transfers by working together within different countries. Wallis said the following on the subject:
“How do you go from digital pound to digital rupee? Central banks should consider working with the private sector for this level of interoperability. We also want a balance between politics and technology. ”
Ripple is trying to be an integral part of the CBDC financial system. It does this by focusing on two key areas that it believes are critical. The first is to create a core ledger for CBDC.
The second level of interoperability Ripple is working on allows these users to move assets between blockchains. Finally, the company is working to make XRP the ideal bridge currency between the upcoming CBDCs.