CBM Report Identifies XRP and Bitcoin as Alternatives to Bank Deposits but Rejects Practical Application Prospects.
The Central Bank of Malaysia (CBM) has published a working report that sparked controversy when assessing the potential of XRP and Bitcoin to replace traditional monetary systems. The document focuses on analyzing the concept of "modern money" and its applications in the context of central bank digital currency development, creating a heated debate in the cryptocurrency asset community about the future role of private digital assets.
CBM notes that digital assets like Bitcoin and XRP "could be widely used as payment methods outside the banking system in the future, replacing circulating cash or bank deposits if they achieve high popularity." This is a rare instance of a central bank officially recognizing the replacement potential of cryptocurrency assets for the traditional financial system.
However, the report simultaneously provides negative assessments of the practical prospects of these two assets. CBM argues that the lack of a "stable nominal peg" and "fragmentation trends" are serious adverse factors that limit Bitcoin and XRP's ability to supplement or replace the current payment system.
Technical Barriers and Liquidation
In a deeper analysis, CBM argues that the decentralized nature of cryptocurrency platforms creates significant liquidation challenges. Without centralized intermediary organizations, "cryptocurrency asset platforms need to maintain large liquidation volumes to perform payments between different cryptocurrency assets," as decentralization "does not allow the balance sheet of any party to expand or contract flexibly."
Although CBM presents a rather negative conclusion, the specific mention of XRP and Bitcoin has sparked a wave of social media debate. The XRP-supporting community sees this as important evidence that the asset is being recognized by central banks, while opponents argue this is merely a theoretical analysis in the context of CBDC research.
On the X platform, user Casey Delaney emphasized the importance of XRP being directly mentioned in the central bank's official document, calling it a positive sign for the "future of finance." However, some counterarguments cite other studies rejecting the payment application capabilities of Bitcoin and Ethereum to demonstrate the basis of CBM's perspective.
Notably, some social media users doubt the independence of the CBM study, suggesting that this conclusion is influenced by international organizations like the World Bank and International Monetary Fund rather than being based on an objective assessment of technological potential.
