- ECB dismisses Bitcoin for reserves, reigniting interest in XRP’s DLT-based potential.
- Lagarde’s stance highlights XRP’s suitability for fast, secure cross-border transactions.
As previously reported by Crypto News Flash, the European Central Bank (ECB) has released a new report suggesting that Central Bank Digital Currencies (CBDCs) could be the best solution for overseas remittances. The study added that CBDCs outperform similar payment methods such as Bitcoin. Currently, the ECB’s stance on distributed ledger technology (DLT) highlights its potential impact on financial markets.
In a turn of events, a tweet by Amelie highlighted a 2019 statement from ECB President Christine Lagarde, where she acknowledged that DLT-based technologies were “clearly shaking the system. The statement reads:
Anything that is using distributed ledger technology, whether you call it crypto assets, currencies, or whatever — and it’s far from Bitcoin — that is clearly shaking the system!
Lagarde’s 2019 Perspective on DLT
In 2019, Christine Lagarde spoke about the influence of financial disruptors leveraging DLT. She identified two main players in the financial landscape: traditional banks and disruptors. Lagarde noted that these disruptors are actively reshaping conventional banking structures.
She also referenced the TARGET Instant Payment Settlement (TIPS) system, launched by the ECB in November 2018, designed to facilitate instant, low-cost transactions between European banks. Lagarde emphasized that technologies utilizing DLT were “clearly shaking the system,” indicating the ECB’s recognition of DLT’s transformative potential in financial institutions.
Current Stance on Bitcoin and Implications for XRP
Furthermore, according to a Reuters report, Lagarde recently dismissed a proposal by Czech National Bank Governor Aleš Michl to include Bitcoin in the country’s official reserves. She reaffirmed that Bitcoin would not be part of central bank reserves, emphasizing the need for reserves to be “liquid, secure, and safe.” Lagarde cited Bitcoin’s volatility and concentration among a few holders as reasons for its unsuitability for central bank reserves.
The crypto community, especially XRP supporters, interprets Lagarde’s statements as an indirect validation of XRP’s role in the future of finance. They argue that while Bitcoin is dismissed due to its volatility, other DLT-based assets like XRP—known for efficient and scalable transaction capabilities—might be better positioned to integrate with institutional financial systems.
While the ECB has not explicitly endorsed any specific digital asset, its focus on DLT-based solutions aligns with the strengths of XRP, which is designed for fast, low-cost cross-border transactions and is already being used by financial institutions worldwide.
However, Ripple (XRP) is trading at $2.17, having decreased by 23.81% in the past day and 26.64% in the past week. See the XRP price chart below.
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