French Bank, Banque de France, seems to be trial-running Ripple as a potential infrastructure for a digital euro.
The world of central bank digital currencies (CBDCs) has taken a new turn with the publication of a research paper titled "Central bank digital currencies - Lessons from China", authored by scholars at the British Ulster University. The paper, which became known in the crypto scene yesterday, delves into the success story of the eCNY, the most widely adopted CBDC to date, and compares it with other potential payment systems, including Ripple.
According to the paper, the eCNY is suitable for its purpose, demonstrating that a retail CBDC can be implemented in a large economy. The study also reveals that the PNC Bank, the French central bank, is testing a private version of Ripple (XRP) as infrastructure for a digital Euro (CBDC).
In a surprising finding, the paper suggests that the eCNY handles a much higher number of transactions per second (TPS) than Ripple, making it a more efficient choice for a CBDC. This is in contrast to Ripple, which the paper deems significantly worse for a CBDC, according to the research.
The paper, published in 2024, uses technical values from 2022, despite referring to current tests by the French PNC Bank. This discrepancy might be due to the paper's focus on the eCNY of the People's Republic, which has already been in circulation for some time.
To provide a comprehensive comparison, the paper presents a table comparing various payment systems popular among consumers or those that could be used for a CBDC. The table highlights the strengths and weaknesses of each system, offering valuable insights for those involved in the development of CBDCs.
The research paper, "Central bank digital currencies - Lessons from China", published by the Ulster University, adds a new perspective to the ongoing debate about the future of CBDCs, particularly the digital Euro and the eCNY. As the race for CBDCs continues, this research could serve as a guide for central banks and financial institutions worldwide.
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