US Federal Reserve Receives Several Recommendations for XRP for Instant Settlement

The US Federal Reserve received several recommendations regarding the third-largest altcoin, XRP, in a public questionnaire regarding central bank digital currencies (CBDCs). The questionnaire, consisting of 22 questions, was aimed at obtaining information about the risks, benefits, privacy concerns and various aspects of the implementation of CBDC. For example, the US Federal Reserve has asked about the potential impact of future technological innovations on CBDC design and policy choices. Respondent James HUGHES emphasized the importance of maintaining open channels with the crypto industry. Giving consumers choice will help drive continued innovation in the digital economy, he said.

Ryan HANNA from the US banking industry noted the possibility of widespread power outages or power grid issues affecting CBDC functionality. As a result, this respondent highlighted Ripple and XRP Ledger (XRPL) as examples of blockchains that provide efficient offline capabilities. Regarding the development of domestic and cross-border digital payments in the absence of CBDC in the US, crypto enthusiast James RYCKMAN pointed to Ripple and XRP as ideal bridge solutions for high-value cross-border payments.

Crypto enthusiast Ernest SHACKLETON expressed confidence in the ability of cryptocurrencies to enable smooth transactions across various platforms. In total, mentions of XRP appeared 111 times in the 584-page document, which reflects the views of hundreds of Americans on the potential implementation of CBDC in the United States. Ultimately, as discussions surrounding the development and implementation of a CBDC continue, it remains to be seen whether the repeated mentions and endorsements of XRP and XRPL will impact the Federal Reserve’s considerations.

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