A recent report commissioned by CPA Australia has singled out Ripple’s XRP as a good token on which to possibly build a CBDC.
The report takes a look at Bitcoin and Ethereum as well, and outlines why they are not as attractive a choice for a potential CBDC.
Volatility Not Welcome
The RBA has been see-sawing for a while on the issue of CBDCs – first researching them, then deciding that there is no reason to work on one before stating that they’re continuing their research anyway. In the meantime, other countries have also been carrying out CBDC-related research independently.
In the new report, CPA states that in their opinion, Bitcoin is far too volatile to ever host a CBDC – which should match the value of current legal tender.
“Despite it not being legal tender, Bitcoin is popular, and it is accepted as a medium of exchange in many places. Bitcoin’s price has been subject to spectacular volatility in recent years and this volatility has resulted in a lack of confidence in Bitcoin as a medium of exchange or as a store of value and raised concerns among central banks as to the viability of cryptocurrencies as CBDCs.”
Read more: https://cryptonews.com.au/report-by-cpa-australia-singles-out-xrp-for-cbdc-potential
