Ripple is making headlines again due to the latest achievement. It’s been just revealed that The Arab Monetary Fund (AMF), a sub-organization of the Arab League, has named global payments network RippleNet as a possible alternative to central bank digital currencies (CBDCs).
In a new report, it’s been revealed that the AMF’s Arab Regional Fintech Working Group says there is considerable risk for a nation to issue a CBDC, including the possibility that local currencies eventually lose their basic utility.
“There are many risks associated with the international positions on local CBDCs ranging from the risk of ‘digital dollarization,’ international spillovers and the impact on the international role of currencies.”
The notes continue and say this:
“If a CBDC is used outside of its jurisdiction successfully, this could lead to a local currency losing its function as a medium of exchange, unit of account, storage of value and eventually raises financial stability risks.”
The same report also revealed the following:
“In addition, issuing CBDCs to nonresidents can result in an increase in exchange rate volatility and change in capital flow dynamics since CBDC characteristics make them appealing to investors as an alternative financial instrument.”
Check out the complete report in order to find out more available details.
Ripple CEO addresses victory against the SEC
t’s been just revealed that the CEO of Ripple is addressing the victory against the SEC. Check out the latest reports about all this below.
He is celebrating a recent court decision to deny the U.S. SEC a motion seeking to strike the payment company’s fair notice defense.
As you probably know by now, in the ongoing lawsuit, the SEC alleged that the payments company unlawfully sold XRP as an unregistered security – this is a position the regulator maintains to this day.
Stay tuned for more news and keep your eyes on the market.