February 1, 2021 / Business

Ripple Startup To Take Part In The Development Of National Digital Currencies

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A team at California-based startup Ripple is in talks with global central banks about the possibility of using their own tools to create central bank digital currencies (CBDCs). RippleNet top manager Ashish Birla shared this information.

What Is Known About The Initiative

According to the top manager, agreements with central banks can become a serious impetus for the spread of technical solutions of a startup. Ashish Birla did not elaborate on which regulators Ripple is negotiating with. According to him, representatives of the startup are discussing possible strategies for cooperation with specialists from financial institutions around the world.

A top manager at Ripple noted that the coronavirus pandemic has contributed to the popularization of the project’s technical solutions. Also during the webinar, he drew attention to the fact that the company is currently engaged in the development of credit products.

Against the background of the news, the XRP rate went into a positive movement. At the press-time, the token is trading at $ 0.71.

Ripple vs. SEC

Recall, that at the end of 2020, SEC filed a complaint against Ripple in court. Representatives of the regulator believe that the startup was illegally selling securities in the form of XRP tokens. The project team did not agree with the legal status of the cryptocurrency defined by the SEC.

Amid the litigation, Ripple also faced lawsuits from investors. Despite the pressure, the startup team decided to settle the conflict with the SEC peacefully. At the same time, representatives of Ripple drew attention to the fact that due to the actions of the American Commission, project investors around the world suffered.

On Friday, January 29, the startup team provided the SEC with a response to the lawsuit. In it, experts asked the Commission to explain why XRP is a security, while Ethereum, which performs similar functions, is not. Also in the document, the startup team presented several arguments in favor of their theory about the legal status of tokens.

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