xrp crypto news

XRP and XLM compete for CBDC market share

Ripple flows out of exchanges as Bitcoin and Ethereum inflow spikes
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  • Moneygram has partnered with Ripple’s rival Stellar to enable cash financing and payments in currencies such as the US dollar and Japanese yen using USDC.
  • Ripple offers smart contract functionality while Stellar is a competitor offering built-in asset issuance, eliminating the need for smart contracts.
  • XRP holders awaiting the outcome of the SEC case against Ripple can now represent their interests as “Amicus Curiae.”

XRP holders rejoice after being called to represent their interests as the “friend of the court.” Ripple has shifted its focus from transaction settlement to issuing and operating central bank digital currencies (CBDCs).

Stellar challenges Ripple’s dominance of CBDC

Stellar, an open source and decentralized protocol, has emerged as a giant competitor to payments giant Ripple with its keen interest in operating digital central bank currencies. Stellar explains how the blockchain industry has matured and central bank digital currencies have become relevant in her latest blog.

Stellar offers its own blockchain network to design a CBDC issuance. blog post reads,

Stellar provides interoperability and flexibility for unauthorized ledgers with built-in capabilities to ensure security, certainty, and control – as with a centralized or authorized ledger. This combination makes it particularly suitable for issuing digital central bank currencies.

Although Ripple works with central institutions and monetary authorities in Asia, specifically in Bhutan, the issuance of a CBDC challenges Stellar by eliminating programmability and complexity.

Stellar offers asset licensing and final transaction features, removing the complexity of the process for banking authorities. Moreover, the blockchain currently hosts a variety of fiat-backed stablecoins, which makes the competition for Ripple tough.

Another update in favor of Stellar’s advancement in the CBDC ecosystem is its partnership with global money transfer service MoneyGram.

Through this partnership, the money transfer giant aims to support cash financing and payments in multiple fiat currencies with USD Coin, a stablecoin issued by Circle.

The progress in the SEC case against Ripple provided relief to XRP holders and boosted the altcoin’s bullish outlook. Although the application of XRP holders to join the case as defendants was denied, they can now represent their interests as “Amicus Curiae” court friends.

While Ripple is making strides to bring court proceedings closer to a positive outcome, the payment giant has buried the Securities and Exchange Commission in paperwork.

Industry supporters predicted that a Ripple win would positively impact the price of XRP and the overall cryptocurrency ecosystem.

FXStreet analysts have assessed the price of XRP and predicted that the altcoin will enter a new expansion phase targeting $1.40.

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