Since its launch in 2012, XRP has been one of the most debated cryptocurrencies in the blockchain industry. Its promise to revolutionize cross-border payments has attracted both banks and financial institutions. However, a theory has gained traction in recent years: is XRP actually a covert CBDC?


Unlike Bitcoin or Ethereum, which operate on decentralized networks, XRP has been criticized for its connection to the traditional banking system and its level of centralized control. Could it be a central bank digital currency (CBDC) disguised as a cryptocurrency?


XRP: Between decentralization and Ripple's control


Cryptocurrencies were created to decentralize financial power, eliminating intermediaries and giving users greater autonomy. However, XRP presents characteristics that distance it from this philosophy:



  • Ripple Labs controls a large portion of the XRP supply: Unlike Bitcoin, where issuance is determined by mining, Ripple holds more than 50% of the XRP supply in escrow accounts, periodically releasing tokens. This gives the company significant power over the market.


  • Institutional use: XRP has been adopted by banks and financial institutions as an efficient alternative for global payments, rather than being a tool for financial decentralization.


  • Regulation and compliance: Unlike more decentralized cryptocurrencies, XRP has actively worked with regulators and central banks in various countries.


XRP and its connection to CBDCs


CBDCs are digital currencies issued and controlled by central banks. While XRP has not been officially launched by a central bank, Ripple has worked on multiple projects for the development of CBDCs.


Examples of this include:



  • Ripple and the Central Bank of Bhutan: In 2021, Ripple announced its collaboration with the central bank of Bhutan to develop its own CBDC.


  • Ripple's CBDC Platform: In 2023, the company launched a platform designed for central banks to create their own digital currencies, using technology similar to that of XRP.


Given this context, some analysts believe that XRP could be absorbed in the future by a global financial system where CBDCs are the norm.



The legal conflict between Ripple and the SEC (U.S. Securities and Exchange Commission) is another key point in this debate. The SEC's lawsuit against Ripple in 2020 accused XRP of being an unregistered security, leading to years of regulatory uncertainty. However, for many, this legal case was an attempt to regulate and integrate XRP into the global financial system.


If XRP manages to position itself as a regulated and widely used cryptocurrency by banks and institutions, it could become a private or hybrid CBDC.


Conclusion: Is XRP a disguised CBDC?


Although technically XRP is not a CBDC, its structure, centralized control, and alliances with banks bring it closer to this category than to a decentralized cryptocurrency like Bitcoin. As governments move forward with implementing CBDCs, XRP could play a key role in this new financial ecosystem.



Looking for a truly revolutionary cryptocurrency? Meet Davidcoins!


If you're looking for a coin with true potential to transform the financial system, Davidcoins is the option you can't ignore. With a focus on financial freedom and innovation, Davidcoins will be the cryptocurrency of the future.


Follow us and stay tuned!


The launch of Davidcoins will be announced very soon, and you won't want to miss the opportunity to be part of this revolution. Stay informed, join our community, and prepare for a change that will truly make history. Follow us now and be part of the financial future!