While this may be true to a certain extent, the high levels of centralization associated with the issuance of CBDCs and a host of other factors may not see it replacing popular crypto-assets as things stand. “CBDCs are not going to usurp the role of universal settlement assets,” said Schwartz, with the Ripple CTO claiming that CBDCs may actually face the same issues as Forex with reserve currencies today.
This is an interesting observation to make as many expect the speed and cost-effectiveness of transactions to be even better in these cases. In fact, the same sentiment was shared by Binance’s CZ in a recent interview,
David Schwartz, CTO at Ripple, recently delivered a lecture at Berkeley, a lecture during which he shared his views on how he sees XRP and XRPL fitting into the broader picture of a world with CBDCs. CBDCs have been quite the rage recently, especially since the United States’ Fed Chair Powell confirmed that the U.S is looking into the Digital Dollar experiment. Talking about CBDCs, Schwartz said,
“If there is a government pushing another cryptocurrency that’s even more open, more free, has less restrictions than Bitcoin, and is faster and cheaper to use, then that would threaten Bitcoin.”
“CBDCs can make domestic settlement faster, more reliable, and less costly.”
According to him, a CBDC by definition will carry