Here’s How XRPL Might Become The Platform Of Choice For CBDCs

XRPL – Avalanche (AVAX), Polygon network (MATIC), Ethereum (ETH), and BNB Chain (BSC) are just a few of the top blockchains that will implement sidechain solutions in 2022. The Federated Sidechains of the XRP Ledger (XRPL) blockchain can boost state-backed digital assets.

For CBDCs, the idea of federated sidechains appears to be wise

Mr. Jake has shared his opinions regarding the contribution of XRPL’s Federated Sidechains to the creation of Central Bank Digital Currencies on Twitter (CBDCs).

He emphasized that for the development of their CBDC, governments will unquestionably want networks that are under central control.

Such platforms cannot be created from nothing, though, as they would not have any users or sources of funding. These issues can be resolved thanks to Federated Sidechains by XRP Ledger, which can implement all necessary governance, logic, and ideas for its issuers.

In addition, Federated Sidechains are adaptable and flexible in terms of use cases, adoption, and compatibility with established blockchains:

XBridge enables the transfer of assets across different ledgers (ie. XRPL<->USD-L). A federated sidechain can be centralized or decentralized, open or private, its validators can follow any consensus mechanism. Any feature can be implemented to enforce law and regulation

Centralized resource for businesses and government – XRPL

The XRP Ledger (XRPL) should acquire a userbase, liquidity, and “talents” for subsequent development phases as it is not yet mature enough to onboard such a sophisticated infrastructure “as is.”

In addition, Mr. Jack said that as of Q4 2022, the Rippled codebase is reviewing and testing the XBridge change that would activate the Federated Sidechains concept.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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