James Wallis, Vice President of Central Bank Engagement and Central Bank Digital Currency (CBDC) at Ripple, said: highlighted A short video explaining the role of CBDC in promoting global financial inclusion. Wallis clarified that financial inclusion aims to expand financial services to individuals around the world, especially those with low incomes and the lack of financial institutions.
Wallis pinpointed the main factors behind financial exclusion, such as low income and lack of existing relationships with financial institutions leading to a lack of credit history. In areas of financial exclusion, banks are often for-profit organizations driven by shareholder interests, serving individuals with limited resources because it is difficult to generate profits from such groups. This has become an issue.
Wallis argued that CBDCs offer a cost-effective solution by enabling financial services at significantly lower costs than traditional methods. He said CBDCs offer streamlined payment options and the opportunity to establish credit without a previous relationship with a financial institution.
This allows individuals to build credit history, gain borrowing capacity, and stimulate business growth. Mr. Wallis concluded that CBDC is a transformative innovation that addresses global challenges in financial inclusion.
Ripple is active in partnership It participates in CBDC initiatives with more than 20 central banks around the world and has assumed the role of technology partner for the second phase of Georgia’s Digital Rari project. Additionally, Ripple is actively working on CBDC collaborations in Bhutan, Palau, Montenegro, Colombia, and Hong Kong.
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Ripple continues its legal battle with the US Securities and Exchange Commission. Ripple in July received Recognized by Currency Research for its contributions to the advancement of digital currencies and sustainability efforts, particularly in promoting innovation in CBDC.
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