The past few months have been quite turbulent for Ripple due to the looming allegations put forth by the Securities and Exchange Commission. Despite this, the company has managed to trudge along, as it continues to develop new solutions for a brighter future.
The following are a few examples of noteworthy developments involving Ripple over the past week.
CBDC Private Ledger
Ripple has announced that it is piloting a private variant of its popular public blockchain.
It is no secret that basically every country has/is considering the development and launch of a Central Bank Digital Currency (CBDC). Ripple has recognized this as a fantastic opportunity, and has set out to serve this soon-to-be booming sector.
It is noted that the design of this pilot is geared specifically towards payments. Between the intent, along with a proven history, the endeavour is already catching the attention of central banks. In a recent comparative review of CBDCs by RMIT University, it is noted that Banque de France is actively considering its use for an eventual European digital currency.
While the aforementioned pilot program is a positive step forward for Ripple, not everything is peachy behind the scenes. It was recently announced by both Ripple and MoneyGram that their ongoing partnership has been dissolved.
Over the years, MoneyGram became a showcase for the capabilities of Ripple and its payment platform. This dissolution occurred due to the ongoing uncertainty surrounding the status of XRP as a security.
This is no doubt unfortunate for each company, as the partnership afforded MoneyGram significant income from Ripple, while the latter received increased exposure in a time when it was/is trying to establish itself as a reliable service provider.
Ending the Feud
Between developing pilot programs, dissolving relationships, and fighting the SEC, Ripple has its hands full at the moment. Perhaps being stretched to thin was a factor when it recently announced that it had dropped its on-going lawsuit against YouTube.
The lawsuit, which was filed by Ripple in 2020, stemmed from a series of fraudulent scams falsely associating themselves with Ripple which were hosted on the YouTube platform. Ripple has alleged that YouTube did not do enough to eliminate these scams, and in the process tarnished the reputation of Ripple as a result.
Ripple has noted that it has been able to find a common-ground with YouTube, and will work together moving forward to address any lingering issues.
In another boon to Ripple, a recent request for the return of $175 million USD from one of its investors, Tetragon, has been denied by the Court in Delaware.
The claim was made as Tetragon included as clause upon investment which allowed for it to recoup its funds, in the event that XRP was deemed a security. Clearly the courts have found that this claim was premature, as they sided in favour of Ripple.
While XRP may eventually be deemed a security, Ripple has only been charged at this point in time – it has not been found guilty. Opinions vary on whether it will prevail against the allegation put for by the SEC, but Tetragon appears to have ‘jumped the gun’ with its request.
The Delaware Judge which came to this decision stated,
“But XRP is no more a security after the SEC filed the enforcement action than it was before it. A determination …resolves the question of whether XRP is a security. The enforcement action, by contrast, asks that question. The question is not yet resolved, so a determination has not yet been made. And when it is made, it will be made by the District Court.”