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Ripple's CBDC Focus Challenges Proposed Bitcoin Reserve, Sparks Industry Debate

Ripple's CBDC Focus Challenges Proposed Bitcoin Reserve, Sparks Industry Debate

Cryptocurrency News

Ripple's CBDC Focus Challenges Proposed Bitcoin Reserve, Sparks Industry Debate

A significant clash has emerged in the cryptocurrency world regarding the proposed Strategic Bitcoin Reserve (SBR). Pierre Rochard, Vice President of Research at Riot Platforms, claims Ripple is the biggest obstacle to its establishment. Rochard alleges Ripple’s opposition stems from its strong focus on Central Bank Digital Currencies (CBDCs), which it aims to build on its own infrastructure.

Ripple's Alleged Lobbying Efforts

Rochard publicly accused Ripple of spending "millions" lobbying against the SBR initiative, aiming to influence policymakers and derail its progress. He further alleges that Ripple previously targeted Bitcoin mining during the Biden administration, suggesting the company is prioritizing the narrative surrounding CBDCs built on its platform over a Bitcoin-centric reserve.

Understanding the CBDC vs. Bitcoin Debate

CBDCs are digital versions of fiat currencies, centrally controlled by governments. Unlike decentralized cryptocurrencies like Bitcoin, they lack the inherent security and transparency of blockchain technology. Ripple's active involvement in CBDC development, including the launch of a dedicated platform in May 2023, fuels Rochard's concerns.

Ripple's Response and Political Implications

Ripple's co-founder, Chris Larsen, previously endorsed Kamala Harris's presidential campaign and reportedly contributed over $11 million to supporting PACs. While Ripple CEO Brad Garlinghouse emphasizes a bipartisan approach, Rochard argues Ripple’s lobbying intensified after Donald Trump’s election victory, given Trump's outspoken opposition to CBDCs.

Trump's recent executive order banning the creation of US CBDCs adds another layer of complexity to this situation. This action seemingly contradicts Ripple’s strategies and objectives.

Contrasting Views

Garlinghouse refutes Rochard’s claims, stating Ripple’s actions ultimately increase the likelihood of a crypto strategic reserve, potentially including Bitcoin. However, Rochard insists that any true SBR should focus exclusively on Bitcoin.

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Disclaimer: This information is for educational purposes only and should not be considered financial advice. Always conduct thorough research and consult with a professional before making any investment decisions.

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