With the Davos World Economic Forum coming to a close, it is apparent that many world leaders are looking into new ways to inject liquidity into an economy that has been is running out of steam. Endlessly printing money and lowering interest rates are meant as short term solutions to long term problems. When interest rates are near zero, you cannot lower them further to encourage spending, so where do we turn to for liquidity. Central Bank Digital Currencies (CBDCs) could lower transaction costs across the board, leveling the playing field and speeding commerce worldwide.
image source: u.today
During Davos, a toolkit was released that was intended to help central banks identify solutions when creating CBDCs. Under the section titled "Most relevant for wholesale CBDC," we see Ripple's XRP next to JPM Coin (JP Morgan's shitcoin) as an example of "Crypto-assets designed for inter- or intrabank payments and settlements." Essentially, central banks should be looking at Ripple as a framework when building their CBDC.
So, is this good for XRP? Well, maybe. And maybe not. Central banks have a policy of ambiguity. Basically, tell the public as little as possible to prevent the kind of sensationalizing that we already see around Ripple. The WEF has essentially said, "Ripple is a great platform for payments, but we are still looking into solutions." Will the XRP be a digital reserve currency? Maybe. Will a central bank use Ripple as a platform for their own creation? Maybe. Will central banks pretty much copy and paste Ripple's code to create their own blockchain? Who the hell knows. My advice is to diversify. Hold as many inter- or intrabank payments system coins as possible, along with all sorts of other cryptocurrencies. For now and for always, ambiguity will be the policy, so don't put the cart before the horse, so to speak. Just because Garlinghouse pops up in important places, that isn't a guarantee. Play smart ladies.