Amidst the ongoing high-octane legal drama with the United States Securities and Exchange Commission (SEC), Ripple, the maker of XRP, has revealed a new plan to help over 3.7 billion people who are either unbanked or under-banked around the world.
On April 23, Ripple took to Twitter to announce its partnerships with several innovative fintech companies, universities, NGOs, and social entrepreneurs, in order to transform a global financial system enabling a sustainable crypto solution and helping entrepreneurs to build more innovative blockchain research and technical projects.
The climate crisis is a defining issue of the 21st century.
We know that #blockchain innovations in carbon markets can help achieve global climate goals. On #EarthDay, explore how today's climate leaders are building a sustainable future on the #XRPLedger. https://t.co/pEi6ZDTKHT pic.twitter.com/12sz8FJm8q— Ripple (@Ripple) April 22, 2023
Financial Inclusion For People Across The Globe
According to the official blog post, Ripple is focusing on enabling low-cost and always-on remittances in emerging markets and helping in building Central Bank Digital Currency (CBDC) platforms for governments to increase financial inclusion for more than 3.7 billion people worldwide. It claimed nearly 1.7 billion people across the world are unbanked and approximately 2 billion more people are under-banked.
The company emphasized that the current global climate crisis is one of the most serious problems of the century. In preparation to mitigate such challenges, Ripple stated that it is working towards creating numerous blockchain innovation projects in carbon markets so that it can assist in achieving global environmental goals.
The platform stated the adoption of cryptocurrency and blockchain technology could help increase the economic participation of these individuals. Ripple is also creating new opportunities enabling a sustainable livelihood that can help dramatically increase the global economic participation the people without access to banking services citing, “it is committed to a low-carbon future for the crypto industry and global economy.”
Pre-funding Strategy For XRP
In order to achieve its goal, Ripple has collaborated with companies and organizations from over 80 countries and has already provided $150 million in donations. Furthermore, the cryptocurrency company also asserted that the XRP Ledger is the world’s first major global carbon-neutral blockchain, enabling sustainable crypto solutions and powering more efficient, scalable, and dynamic carbon markets. Jules Kortenhorst, CEO at Rocky Mountain Institute said,
“Blockchain has a vital role to play in achieving a zero-net emissions energy future. Ripple is taking the lead to ensure fintech is part of the effort to build a sustainable world that is not only transformative for banks and consumers but also beneficial for the planet.”
Meanwhile, on the same day, Ripple CTO David Schwartz clarified the company’s prefunding strategy for XRP. In response to a thread discussing Ripple’s nostro/vostro accounts and prefunding, Schwartz explained that instead of prefunding in every market, customers can prefund in just one account and make payments to any On-Demand Liquidity (ODL) destination market.
The idea is that instead of prefunding in every market you might want to make a payment in, you can prefund in just one account and make payments to any ODL destination market.
— David "JoelKatz" Schwartz (@JoelKatz) April 22, 2023
The CTO also highlighted the flexibility of Ripple’s system, specifying that customers can hold their funds in their preferred asset and pay in a different one.
