The Euro Digital Association (DEA) has published a new whitepaper in which Ripple Director of CBDC Product Management Anthony Ralphs is a contributor. Ripple called attention to this development in a tweet and blog post today.
The latter explains that as central banks around the world increasingly explore Central Bank Digital Currencies (CBDCs), privacy has become an important consideration. The DEA white paper takes a look at the subject of privacy and CBDCs.
It examines the importance of privacy and how it affects the adoption, use, and implementation of Central Bank Digital Currencies. In order to gain user trust and eliminate fear of government surveillance, the DEA recommends improving privacy and security in CBDC systems.
Anthony Ralphs of Ripple contributed his expertise and research to this working group. The paper concludes that each central bank has different views and values on privacy. Because of this, Ripple and the DEA define some minimum standards that must be respected on a global scale.
Blockchain is the best technology for this, according to Ripple employees who stated; “One thing the paper examines is CBDC—and the blockchain technology it’s built on to offer better security and access management to help ensure privacy in the various use cases it’s engaged in.”
In addition, Ripple notes in a blog post that various use cases and implementations enable CBDC to increase global cross-border data flows in the future. To ensure data privacy, the Euro Digital Association recommends strong encryption methods, strict access controls, regular audits and a strict disciplinary regime for data breaches, among others.
Ripple Establishes CBDC Presence In Europe and UK
Importantly, it should be noted that the DEA is a think tank and thus an independent public voice, not related to the Eurosystem or European organizations.
In addition to Ripple, DEA members include the German Central Bank (“Bundesbank”), Ernst & Young, RTGS.global, Circle, and several German banks such as Hamburg Commercial Bank, Solaris Bank, DZ Bank and German associations. savings bank (Deutscher Sparkassen Giroverband).
It is also worth noting that Ripple continues to be a solution provider in the CBDC race. As Bitcoinist recently reported, Ripple Senior Vice President Brook Entwistle revealed that the company is currently working in 20 countries on its CBDC solution.
Interestingly, Ripple was also mentioned in the Bank of England’s digital pound consultation paper. In the UK, the company is also a member of the independent Digital Pound Foundation.
At press time, XRP was trading at $0.4836, a 3.3% gain over the past 24 hours. The price increase may be related to the fact that the CFTC referred to some cryptocurrencies as commodities in its lawsuit against Binance.
On the 1-hour chart, XRP is showing a strong uptrend and is writing higher. Currently, $0.49 is the main resistance to release further upside potential.
Featured images from Mika Baumeister/Unsplash