• The revolutionary nature of Ripple and XRP tech was highlighted by Volante Technologies.
• As a payment infrastructure, Ripple’s tech currently outstrips CBDC and FedNow.

Global cloud service provider Volante Technologies has recognized Ripple and XRP’s ability to complete cross-border settlements with ease. This revelation was discussed in the report titled “Is FedNow a CBDC“, where the billion-dollar Silicon Valley cloud payment company addressed the difference between national digital currency popularly known as Central Bank Digital Currency (CBDC), traditional cryptocurrencies and the recently launched FedNow payment service. 

Traditional cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Ripple XRP, and others were ranked higher than CBDCs although there were some shortcomings. Volante Technologies made reference to Ripple’s utilization of XRP to complete cross-border payments as one of the advantages of cryptocurrencies. 

Precisely, Volante referred to Ripple Labs’ technology as a “real-time gross settlement system.”

Furthermore, the report highlighted that Ripple has evidently established a fully-functional globally recognized payment ecosystem with XRP sitting at its core. Although it wasn’t specified, the description given by Volante fits Ripple’s On-Demand Liquidity (ODL) product which processes cross-border payments in real time. 

Markedly, ODL is a part of RippleNet, a global network of financial institutions for cross-border settlements. It capitalizes on the XRP cryptocurrency for efficiently delivered transactional payments. 

Ripple (XRP) Outperforms Others in Terms of Security and Scalability

Generally, the XRP Ledger performs better than many other top blockchains including Bitcoin (BTC), Ethereum (ETH), and Cardano (ADA) as it relates to its security, speed, cost, and scalability. Its transaction speed is by far the lowest, making it the fastest of all four networks. The XRP Ledger has an attractive average transaction cost of $0.0004 and compared to BTC, ETH, and ADA, this is reasonably low.

On the subject of scalability, data from some sources suggest that XRPL can handle as many as 1,500 Transactions Per Second (TPS). However, Ripple’s Chief Technology Officer (CTO) David Schwartz explained that the network has never handled that much TPS. He mentioned that XRPL handles only 300 to 500 TPS. 

This superior scalability is one of the reasons why Matt Hamilton, a former Director at Ripple Labs Inc urged crypto users in El Salvador to switch to XRP over Bitcoin.

These numerous use cases and the capacity of cryptocurrencies like XRP has posed tough competition to central banks. Therefore, many of them have turned to implementing a CBDC which they believe will enable them to keep up with the growing trend of cryptocurrencies. 

Some sources have confirmed that a long list of countries have begun their CBDC implementation journey but not many of them have achieved tangible results in this regard. So far, only 11 nations including Nigeria and The Bahamas have successfully implemented their national digital currency. 

On the other hand, the FedNow® Service by the US Federal Reserve is aimed to revolutionize the way financial institutions including credit unions perform transactions. According to Federal Reserve Chair Jerome Powell, the FedNow payment service was launched to streamline everyday payments while making them faster and more convenient. 

In the meantime, neither FedNow nor existing CBDC solutions look like close competition for XRP.

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