Unmasking the XRP Ledger’s Central Role in Global Finance

Unmasking the XRP Ledger’s Central Role in Global Finance: A Deep Dive into BIS Projects

Hey my friends, I hope all is well! Today, we’re diving deep into the Bank for International Settlements (BIS), often called the “central bank for all central banks”. This powerful entity is spearheading numerous projects aimed at revolutionizing cross-border payments and digital currencies. While they often use ambiguous terminology, compelling evidence suggests that the XRP Ledger (XRPL) is at the heart of many of these initiatives, including Project Jura, Project Mandala, Project Dunbar, Project Agora, and Project Mariana. The intention behind using different terms like “unified ledger,” “shared ledger,” “regulated liability network,” and “internet of value” is to obscure the XRPL’s central role from the public.

Video Link: https://youtu.be/Qo0W-aZynng?si=yoy4xUlmP7opttK7

1. Project Jura: Cross-Border Settlement with Wholesale CBDCs

Project Jura, a major initiative involving the BIS, explores the direct transfer of Euro and Swiss Franc wholesale Central Bank Digital Currencies (CBDCs) between French and Swiss commercial banks on a “single DLddT platform”. This platform is described as being operated by a “third party”, and according to the sources, that “third party” is XRP, which refers to Ripple.

Key aspects of Project Jura, as described in the sources:

Its primary focus is cross-border settlement using wholesale CBDCs.
The experiment is conducted in a near-real setting using real value transactions and complies with current regulatory requirements.
RippleNet, the global payment network by Ripple, is highlighted as AML (Anti-Money Laundering) and KYC (Know Your Customer) compliant, and it operates with a global governance rulebook that all participating banks and entities agree to. This compliance aligns with Project Jura’s stated adherence to current regulatory requirements.
The project is a public-private collaboration involving the Bank of France, the BIS Innovation Hub, the Swiss National Bank, and a private sector consortium.
Wholesale CBDCs are issued on this third-party DLT platform.
Project Jura is said to complement the ongoing G20 work on cross-border payments, which stems from the Financial Stability Board (FSB). The FSB is described as the “most powerful regulator in the world” and the “right arm” of the BIS.
The G20 roadmap is closely tied to other BIS initiatives like Project Agora and the GL1, which explore unified and shared ledger infrastructures, all of which are argued to be the XRP Ledger.

A 2017 proof-of-concept conducted by the Bank of England with Ripple explored the synchronized movement of two different currencies across two simulated real-time gross settlement (RTGS) systems using Ripple Connect and the Interledger Protocol (ILP). This historical proof-of-concept is presented as evidence that the XRP Ledger acts as a “global RTGS,” interconnecting central banks and their RTGS systems, exactly as described by Project Jura and the G20 cross-border roadmap.

Video Link: https://youtu.be/Li1laj470EM?si=1m_2z2QMZ_UJS7K-

2. Project Mandala: Encoding Regulatory Requirements in a Common Protocol

Project Mandala, presented as a successor to Project Dunbar, involves four significant central banks: the Reserve Bank of Australia, Bank of Korea, Bank Negara Malaysia, and the Monetary Authority of Singapore. This project aims to encode jurisdiction-specific policy and regulatory requirements into a “common protocol” for various cross-border use cases, including foreign direct investments, borrowing, and payments.

The sources claim that the challenges Project Mandala seeks to address, such as disparate policy and regulatory frameworks that impede smooth cross-border payments, are already solved by RippleNet. RippleNet is asserted to be fully AML and KYC compliant and possesses a global rulebook to which all participating financial institutions agree. The sources contend that Mandala’s “compliance by design” architecture is identical to RippleNet’s existing capabilities.

An AI analysis, as presented in the source, highlights several similarities between Project Mandala and Ripple/XRP Ledger:

Regulatory Compliance Integration: Both systems are designed to embed compliance within their transaction protocols, facilitating the exchange of KYC and AML data before transactions proceed.
Decentralized Architecture: Both utilize decentralized networks. RippleNet operates the XRP Ledger, a decentralized blockchain that validates transactions in real-time without intermediaries, which is described as similar to Mandala’s decentralized system.
Streamlined Cross-border Payments: RippleNet uses XRP as a bridge currency for fast, low-cost settlements, aligning with Mandala’s objective of streamlining payments through automated compliance.
Compliance Verification with Privacy: RippleNet’s validators and the Interledger Protocol (ILP) ensure transaction legitimacy while maintaining data integrity, which is compared to Mandala’s “proof engine”.
AML and KYC Focus: Both systems prioritize AML and KYC compliance, with RippleNet’s XCurrent specifically designed to integrate with banks’ existing AML/KYC frameworks.

The “common protocol” and “unified and efficient global financial market infrastructure” described in Project Mandala are strongly associated with the XRP Ledger and the Interledger Protocol.

3. Project Dunbar: The Multi-CBDC Common Platform

Video Link: https://youtu.be/lfUxr8TUvAI?si=eBMYIP3dTIAFAAGt

Project Dunbar explores the potential of a “common platform” for multiple Central Bank Digital Currencies (CBDCs) to facilitate cheaper, faster, and safer cross-border payments. This collaborative effort includes the BIS, the Reserve Bank of Australia, Central Bank of Malaysia, the Monetary Authority of Singapore, and the South African Reserve Bank. The project’s documentation frequently refers to a “common platform” (25 times) and a “shared platform” (16 times).

The speaker emphatically states that this “common platform” or “shared platform” is the XRP Ledger. This platform is characterized as a Distributed Ledger Technology (DLT) designed for communication among central banks.

Synonymous Terminology and the XRP Ledger: A recurring theme throughout the sources is the assertion that various terms used by central banks and financial institutions, particularly the BIS, are all synonymous with and refer to the XRP Ledger. These terms are allegedly used to confuse the public and conceal the XRP Ledger’s central role. The terms include:

Unified Ledger.
Shared Ledger.
Regulated Liability Network (RLN).
Regulated Settlement Network.
Internet of Value / Regulated Internet of Value / Fin Internet. These names, particularly “Regulated Internet of Value,” were allegedly changed because “Internet of Value” is widely recognized as Ripple’s vision for the XRP Ledger.

Ripple’s CBDC Platform: Ripple announced in 2021 that it was piloting a private version of the public open-source XRP Ledger, specifically designed for central banks to issue and manage digital currencies securely and flexibly. This platform, capable of handling multi-CBDC scenarios, allows central banks to connect to a “network of CBDC ledgers” for full settlement interoperability. The source states that Ripple is the only blockchain company that offers such a seamless CBDC launch platform.

While Project Dunbar documents mention R3 and Quorum, the speaker maintains that the shared ledger must ultimately be the XRP Ledger due to its unparalleled capabilities for multi-CBDC settlement, liquidity, and the established RippleNet network. It is noted that R3, a partner highlighted by Quant’s CEO Gilbert Verdian, reportedly received billions of XRP from Ripple under an agreement to bring utility to RippleNet and the XRP Ledger.

4. Project Agora: The Global Economy on the Unified Ledger

Video Link: https://youtu.be/J2nnHQyNF5s?si=vEBu-o9q7vwmP6M6

Project Agora is described as a monumental BIS project involving seven central banks (Bank of France, Bank of Japan, Bank of Korea, Bank of Mexico, Swiss National Bank, Bank of England, Federal Reserve Bank of New York) that collectively represent 62% to 63% of the world’s GDP. This project specifically focuses on a “unified ledger concept” for cross-border payments.

The core assertion in the sources is that the “unified ledger” referred to throughout Project Agora is definitively the XRP Ledger. The speaker frequently notes that the BIS often describes these initiatives as “proposals,” “theoretical,” or “concepts,” but argues that these systems are already built, proven, and operational.

Quant’s Crucial Role: Quant Overledger is identified as the interoperability solution chosen by the BIS. It functions as an operating system that allows existing legacy financial systems to connect seamlessly to various blockchain networks, including the unified ledger (XRP Ledger), to develop “multi-chain applications” (MDAPs). Quant provides the programmability and common custom APIs necessary for these connections. The sources clarify that while Quant is “extremely complimentary” to the unified ledger and the financial internet (XRP), it is not the unified ledger itself.

The BIS documents state that a “tokenized unified ledger incorporating central bank money” will form the foundation of a tokenized monetary and financial system. Project Agora explores how the tokenization of wholesale CBDCs and commercial bank deposits on a “programmable platform” can enhance the monetary system. This “programmable platform” is understood to be the XRP Ledger, with Quant providing the programmability.

A significant point made in the sources is a statement from a BIS representative that the “unified ledger replaces Swift”. This directly aligns with Ripple’s long-standing public mission to replace Swift for cross-border payments.

Additionally, the unified ledger’s programmable nature allows AML and KYC checks to be embedded into the platform, which directly parallels RippleNet’s established compliance features.

5. Project Mariana: XRP’s Automated Market Makers in Action

Video Link: https://youtu.be/JYmUQyW12U?si=w6brytoe3Fz5rl

Project Mariana, another initiative from the BIS Innovation Hub, centers on the cross-border exchange of wholesale CBDCs using “automated market makers” (AMMs). This project involves three central banks: the Bank of France, the Monetary Authority of Singapore, and the Swiss National Bank.

Project Mariana is presented as a “proof of concept” for a “global interbank market for spot FX” featuring both AMMs and wholesale CBDCs. The sources strongly suggest that despite being termed an “experiment” or “proof of concept,” the underlying technologies are already mature and in use.

A crucial aspect of Project Mariana is its reliance on a “transnational network” that hosts the AMMs. This “transnational network” is explicitly identified as RippleNet and the public XRP Ledger. The XRP Ledger’s characteristics as a decentralized, open-source blockchain designed for fast, low-cost cross-border payments across multiple countries and currencies, aligns with the description of a transnational network.

XRP Ledger’s Advanced AMM Capabilities: The sources detail the XRP Ledger’s AMMs, which, combined with its built-in decentralized exchange (DEX) and central limit order book, offer an “unmatched” feature set for instant trading and settlement of wholesale CBDCs. This functionality enables commercial banks to instantly trade and settle CBDCs cross-border with immediate liquidity, and even generate revenue by contributing liquidity. David Schwarz, identified as a key developer for Ripple and previously awarded a patent for a “distributed computer system” in 1989, expressed profound excitement about these liquidity pools and AMM capabilities on the XRP Ledger.

The project’s findings indicate that the transnational network hosts an FX interbank market where “no intermediaries are required to trade”. This capability, which eliminates the need for traditional correspondent banking and systems like Swift, is highlighted as a core advantage of Ripple’s solutions. The integration of trading and settlement into a single step further enhances efficiency.

Project Mariana also emphasizes adherence to a “global set of principles for robust, fair, and transparent markets”. This aligns with RippleNet’s global governance rulebook, to which all network members subscribe, ensuring compliance and standardization for international transactions.

Conclusion

The comprehensive analysis presented in the sources of these BIS projects – Jura, Mandala, Dunbar, Agora, and Mariana – consistently points to the XRP Ledger as the foundational technology. Despite the intentional use of varied terminology like “unified ledger,” “shared ledger,” “regulated liability network,” and “internet of value,” the underlying characteristics, functionalities, and even the historical context of Ripple’s development strongly indicate the XRPL’s pivotal role in the future of global finance.

The XRP Ledger’s unique features, including its private CBDC platform, built-in decentralized exchange (DEX), central limit order book, automated market makers, AML/KYC compliance, and global rulebook, position it as the infrastructure enabling these next-generation payment systems and tokenized assets for central banks and commercial institutions worldwide. While Quant plays a crucial role in interoperability by connecting legacy systems to this DLT infrastructure, the core “internet of value” or “unified ledger” remains the XRP Ledger.

This interconnected web of BIS projects, all seemingly converging on the XRP Ledger, underscores a significant shift towards a new, efficient, and centrally managed global financial system.

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Disclaimer: None of what is said in this post is financial advice. I am not a financial advisor. You must do your own research and make your own decisions. This information is for entertainment purposes only.

Unmasking the XRP Ledger’s Central Role in Global Finance

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