EU’s CBDC project gathers momentum after Ripple and DEA partnership

Ripple has joined the Digital Euro Association (DEA) as it seeks to take part in offering global solutions for central bank digital currencies CBDCs.

Although Ripple’s native token (XRP) is not a CBDC, its blockchain is designed for enterprises and institutions, making it the best option for governments looking to issue a CBDC.

DEA chairman Gross said that the partnership will mainly involve the joint educational and knowledge exchange initiatives that are related to digital currencies. He said that Ripple will help in the expansion of technological competence in the DEA community, noting that CBDC or government Stablecoin projects will need advice on technology design as they advance beyond the initial research stage.

On the other hand, James Willis, Ripple VP of Central Bank Engagements, claimed that Ripple has invested significantly in the CBDC world with 40 members working on CBDCs around the world.

James said:

“The collaboration will further develop Ripple’s efforts in the CBDC sector.”

On Thursday the European Commission announced that it could establish a framework for a digital Euro by late 2023.

In a nutshell, the DEA is the think tank while the European Commission is the executive for the European Union (EU).

Unlike the Commission’s initiatives, Ripple and the DEA’s activities are unlikely to lead directly to the creation of a digital Euro. However, if the DEA think tank engages with policymakers, then the partnership could influence the design of an eventual CBDC.