As conversations around central bank digital currencies (CBDCs) continue in government and financial circles, an older document referencing Ripple and XRP has resurfaced in the debate regarding potential platforms for a European digital currency.
CPA Australia cites Ripple and XRP as a CBDC option
Crypto researcher SMQKE drew attention on X to a report by CPA Australia, which mentions that France has openly discussed utilizing Ripple and XRP as possible foundations for Europe’s central digital currency. The report highlights specific features of Ripple’s technology that were considered advantageous compared to other blockchain platforms.
The document refers to Ripple’s proposal to offer a private variant of the XRP Ledger designed for use by central banks. This initiative aims to deliver a solution where digital currencies can be issued and managed with enhanced security, control, and flexibility.
The CPA Australia report notes that “France has openly discussed Ripple/XRP as a possible platform to Europe’s central digital currency,” underlining favorable features including strong trust among banking institutions.
Comparison with Bitcoin and Ethereum
In comparing various technologies, the CPA Australia document observes that central banks may require permissioned blockchain networks to meet their privacy, transaction speed, and scalability demands, which public systems like Bitcoin might not fulfill. The report argues that permissionless networks often struggle to meet transaction volume and confidentiality standards required for CBDCs.
According to CPA Australia, Ripple and XRP received support from banks due to their operation on a permissioned model, where only selected nodes validate transactions, in contrast to the decentralized and permissionless approach of Bitcoin and Ethereum.
Building on these points, SMQKE asserted that XRP demonstrates superiority over Bitcoin and Ethereum when assessing suitability for projects such as the digital euro.
Mini dictionary: CPA Australia – An established accounting professional body in Australia, CPA Australia publishes research on financial standards, regulatory developments, and technology in the finance sector, including digital currencies.
| Platform | Model | Banking Suitability | Transaction Speed | Privacy |
|---|---|---|---|---|
| Ripple/XRP | Permissioned / Private | Trusted by many banks | High | Strong |
| Bitcoin | Permissionless / Public | Low | Slower | Low |
| Ethereum | Permissionless / Public | Low | Moderate | Low |
The report also acknowledges that some aspects of public blockchain architectures can conflict with central bank requirements. It notes, however, that by altering existing blockchain systems to increase control, security, and speed, central banks could meet the technical demands of CBDC initiatives.
Community reactions and regulatory context
Responses to SMQKE’s post emerged from within the XRP community. One prominent member, XRP Army Grunt, accepted that recent developments, such as the involvement of Ripple Prime in the DTCC’s tokenization launch, demonstrate real-world advancements, but emphasized that there is no confirmation of XRP being used by the DTCC or being officially chosen for the digital euro.
Another community contributor, Karla Milenia, shifted attention toward the regulatory environment in the United States. She stated that in the absence of CLARITY Act approval by U.S. lawmakers, crypto adoption could remain slow in the country while other regions continue advancing their digital asset regulations and CBDC developments more rapidly.
Community participants noted that, while Ripple and XRP are referenced in reports and several projects, no official decision has identified XRP as the chosen platform for the digital euro.
