Ripple (XRP) and Stellar Lumens (XLM) will be backbone of payment system of the future

• The Harvard report explains how Ripple and Stellar can facilitate faster settlements of CBDCs worldwide.
• Ripple’s XRP and Stellar Lumens have thus become a go-to choice for several International businesses.

Although the U.S. Securities and Exchange Commission (SEC) is engaged in a major battle with Ripple, other market players continue to see major value in this blockchain network. Harvard University recently published a report on the pathway for US Digital Dollar.

In the report, the author Jayesh Mehta mentions that blockchain technology has become mature enough to handle FIAT currency in the digital format. Interestingly, the report also mentions that blockchain networks like Ripple and Stellar Lumens have seen growing acceptance while becoming the preferred choice for international businesses.

Besides, the report also goes on to explain how these two blockchain platforms can facilitate instant CBDC settlements worldwide while leveraging the power of AI and Machine Learning. This process also involves an ML-controlled FX interface. The author explains the entire seven-step automated process for the immutable fund transfer chain.

1. The sender would initiate the transaction in FIAT currency, receive the private key and give it to the receiver.
2. The send would choose either immediate conversion or future date conversion and give instructions to the ML-driven FX platform.
3. Based on instructions, the FX interface would convert FIAT to either XRP or XLM.
4. The ML-controlled Smart Contract will execute the instructions.
5. The FX interface shall send the crypto to the receiver. The XRP blockchain shall handle immutability and the verification process. The execution shall be handled with ML-implemented smart contracts.
6. The receiver would use the private keys sent by the sender and receive funds either in XLM or XRP tokens.
7. The receiver can convert the crypto to the FIAT of his/her choice instantaneously or on a future date. The ML-driven smart contracts will handle the future date execution.

Ripple and Stellar’s Growing Market Penetration

Major economies across the world have been gearing up to launch their central bank digital currencies (CBDCs). However, many experts believe that instead of building the CBDC infrastructure from the ground up, central banks can leverage the existing infrastructure to cater to their instant settlement needs.

As per the latest report, the Stellar Lumens blockchain can serve as the base layer for CBDCs worldwide. Stellar Lumens CEO Denelle Dixon recently stated that they are keen to work with the war-torn country of Ukraine to launch their CBDC.

Furthermore, Stellar Lumens along with Ripple’s XRP have become part of ISO 20022 which makes them suitable and compliant for CBDCs. Furthermore, the Harvard University report notes that CBDCs can work along with stablecoins, and Ripple and Stellar can easily handle such transactions.

Additionally, Tipple is already expanding its ODL solution to more than 40 countries. Thus, it has the infrastructure ready to cater to global economies. Here’s how Ripple’s XRP Ledger can work efficiently with CBDCs worldwide.