In a recent interview with the Digital Pound Foundation, which is an independent forum supporting the implementation of a well-designed digital Pound, Susan Friedman, Head of Policy at Ripple, offered her perspective on the future of Central Bank Digital Currencies (CBDCs) and the role of the Digital Pound in this transformative journey.
Friedman’s role at Ripple involves advocating for policy frameworks that foster the growth of responsible crypto ecosystems, including CBDCs. She expressed enthusiasm about the progressive approach the UK government and the Bank of England have taken towards FinTechs and CBDCs. With its growing presence in London, Ripple is eager to contribute to this dynamic environment.
Friedman sees CBDCs as a natural evolution in how value is exchanged in our increasingly globalized world. She believes CBDCs can offer the same protections as traditional fiat currencies while addressing domestic challenges. However, she emphasized the need for a holistic strategy that allows CBDCs to interact efficiently with global markets and evolve to meet future requirements.
She also highlighted the need for central banks to agree on common standards and protocols to enable interoperability. Friedman believes that drawing on the knowledge and infrastructure the private sector offers can accelerate these initiatives.
She also mentioned that the Digital Pound, in particular, exemplifies the forward-thinking approach that the UK has taken. As one of the founding members of the Digital Pound Foundation, Ripple is actively involved in shaping the theoretical aspects of digital money and working on concrete applications for the Digital Pound.
Friedman also discussed the wider implications of digital currencies. She believes that digital currencies, including CBDCs and cryptocurrencies, can foster financial inclusion, enhance direct person-to-person payments, and increase the speed and efficiency of payments. She added that they could also foster innovation, with digital features like smart contracts and programmable money forming the basis of new financial services.