Will Using XRP as a Bridge for CBDCs Push it Higher?

Will Using XRP as a Bridge for CBDCs Push it Higher?

Cryptocurrency
March 25, 2021 Editor's Desk
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Ripple announced that it would test a private version of XRP designed specifically for central banks earlier this month. They released a new whitepaper pointing out that XRP could be used as a bridge currency for Central Bank Digital Currencies. The paper, named “The Future of CBDC”, said that interoperability, public and private partnerships, and
Ripple CBDC

Ripple announced that it would test a private version of XRP designed specifically for central banks earlier this month. They released a new whitepaper pointing out that XRP could be used as a bridge currency for Central Bank Digital Currencies.

The paper, named “The Future of CBDC”, said that interoperability, public and private partnerships, and neutral bridge currencies are the three keys to overcoming every Central Bank Digital Currency. Ripple also mentioned that a neutral bridge asset could be introduced to support healthy, alternative liquidity markets to allow for a frictionless and cost-effective value movement between various CBDCs in real time.

The report also states that XRP can be used to bridge different central banks’ digital currencies quickly and effectively.

Ripple (XRP) is the seventh-largest digital asset and has a market cap of $21,888,092,054 and is trading for $0.477568 at the time of writing. The coin has established itself in the price range of $0.415-$0.5 since the beginning of March. 

The rising moving average ribbon and MACD indicator point to a bullish market. However, According to Data Analyst Annie Li, there are indications that XRP may be oversold despite the recent surge. As more sellers enter the market, XRP’s price could fall and start on a downward trajectory. 

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