4 Jan

Ripple and Stellar Lumens: Revolutionizing CBDC Settlements with AI and Blockchain

-Harvard University recently published a report on the pathway for US Digital Dollar, which mentions that blockchain networks like Ripple and Stellar Lumens have seen growing acceptance while becoming the preferred choice for international businesses.
-The report explains how Ripple and Stellar can facilitate faster settlements of CBDCs worldwide by leveraging the power of AI and Machine Learning.
-The seven-step automated process involves an ML-controlled FX interface, which converts FIAT to XRP or XLM, and a ML-controlled Smart Contract which executes the instructions and sends the crypto to the receiver.

The development of blockchain technology has enabled the revolutionizing of financial services. This has been especially true in the field of digital currencies, which have become increasingly popular in recent years. Harvard University recently published a report on the pathway for US Digital Dollar, which discusses the use of Ripple and Stellar Lumens as a potential backbone for payment systems of the future.

The report explains how Ripple and Stellar can facilitate faster settlements of Central Bank Digital Currencies (CBDCs) worldwide. As blockchain networks, Ripple and Stellar have seen growing acceptance while becoming the preferred choice for international businesses. The report elucidates how these two blockchain platforms can enable instant CBDC settlements across borders while leveraging the power of Artificial Intelligence (AI) and Machine Learning (ML). The process involves an ML-controlled Foreign Exchange (FX) interface, which converts FIAT to either XRP or XLM. Subsequently, a ML-controlled Smart Contract will execute the instructions and send the cryptocurrency to the receiver. Additionally, the XRP blockchain will handle immutability and the verification of the transactions.

The report also mentions that using Ripple and Stellar for CBDC settlements will have several advantages. Firstly, it will enable immediate transactions, which would otherwise take days or weeks for traditional banking methods. Secondly, it would reduce costs significantly, as the FX interface will be able to convert currencies in real-time and without any intermediaries. Thirdly, the use of blockchain technology will increase security and traceability of transactions and provide a much more reliable system for CBDC settlements.

Overall, the Harvard report demonstrates the potential of Ripple and Stellar to become the backbone of the payment system of the future. The use of blockchain technology and AI/ML-controlled interfaces will enable faster, cheaper and more secure CBDC settlements worldwide. As such, these two blockchain networks could become an integral part of the future of digital payments.