As XRP holders step closer to having their day in court against the U.S. Securities and Exchange Commission, Ripple Lab is now refocusing on a hot new business: central bank digital currencies.
Embroiled in legal troubles, Ripple is now seeking ways to apply the technology underlying its XRP cryptocurrency to helping central banks make their digital currencies more interoperable and useful outside their national borders. According to a CBDC white paper published this week by Ripple, XRP can be a “neutral bridge currency” for CBDCs. This follows Ripple’s announcement earlier this month that it was piloting a private ledger for central banks to issue and manage digital currencies.
Ripple’s CBDC white paper comes as a judge granted the application by XRP holders’ attorney John Deaton to practice “pro hac vice” — which gives a lawyer licensed in another jurisdiction temporary permission to appear in court for the case, according to a court filing this week.
U.S. District Court Judge Analisa Torres had earlier rejected XRP holders’ bid to intervene in the SEC’s lawsuit on procedural grounds as the XRP holders had neglected to file a pre-motion letter — a letter to the judge from the attorney explaining the rationale for the intended application — that her court rules required before any motion can be filed. Deaton subsequently submitted a pre-motion letter for XRP holders to intervene as third-party defendants in the lawsuit. The request is now pending the court’s decision.