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A well-known YouTuber spotlights XRP’s potential involvement in the New York Fed’s digital dollar test, emphasizing its speed advantage.
Digital Perspectives, a popular YouTube channel, recently shed light on the New York Fed’s extensive test on the digital dollar. Of particular interest were the presenter’s remarks regarding the potential involvement of XRP in the experiment.
The test, conducted on a private blockchain that required permission to participate, yielded impressive results, particularly regarding speed advantage. While the specific private network used was not disclosed, the video presenter highlighted the potential involvement of XRP Ledger or other similar platforms.
During the 12-week testing period, major banks, including Wells Fargo and Citigroup, participated in the New York Fed’s exploration of a technology known as the regulated liability network (RLN).
The RLN allowed banks to simulate issuing digital money representing customer funds, settling through Bank Central Bank Reserves on a distributed ledger. The test results confirmed the ability of digital dollars to improve wholesale payments, aligning with discussions surrounding wholesale payments, CBDCs, and the potential role of XRP.
No Legal Impediments
Importantly, the test concluded that there were no significant legal impediments under existing US laws that would hinder the establishment of a digital dollar. While further engagement with regulators is required, the absence of identified legal obstacles indicates a smooth path ahead, according to the XRP analyst.
Incoming 100% Adoption Inside FedNow
The video also featured Ripple partner Finastra discussing the potential of FedNow to accelerate real-time payment growth dramatically. The presenter highlighted the belief expressed by the Finastra representative that 100% adoption of Ripple’s solutions, including XRP, would eventually occur within the FedNow environment.
Also, the presenter clarified that he was not suggesting that FedNow would utilize XRP. Yet he emphasized that the US focused on transitioning to a new set of payment rails.
This transition, coupled with standardized messaging and the adoption of ISO 20022, would facilitate the incorporation of digital assets such as CBDCs, stablecoins, and tokens like XRP and XLM.
Additionally, the video touched on how XRP was directly tested against international regulations, specifically in low-value cross-border remittances between South Africa and the UK. These tests, subject to certain limits prescribed by relevant authorities, evaluated the regulatory treatment of XRP.