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Well this is broadly good news - certainly for XRP and the many FIs plugged into their ecosystem at and least for retail investors. It’s also a sentiment relief for the crypto loyal. But does it not miss a more important point which is how instruments like XRP are collateralised - and indeed if algorithms rather than full reserve assets are the backing model for liquidity? That’s a better use of the SECs time to explore however they want to attempt to classify XRP - it’s not what it is categorised as that matters it’s how it’s backed and how it’s utilised.

Well, well, well more hesitation and procrastination from governments — the clear advantages of alternative payments rails and an inclusive financial system that goes beyond traditional banking and card circuits should encourage stake holders in governments and the private sector to innovate with third party providers like the stablecoin platform company Aryze in order to move forward. The citizenry are not asking for an eEuro from the ECB at all right now and public attitudes research suggests adoption would surely face significant inertia from the populace at large. But people are asking for more efficient, cost effective and inclusive alternatives to the TradFi infrastructure and service levels they are currently stuck with..

The recent paper prepared for the European Parliament, titled "Digital Euro: When in doubt, abstain (but be prepared)," offers a cautious stance on the potential launch of a digital euro. While the paper acknowledges the risks associated with central bank digital currencies (CBDCs), it fails to recognize the opportunities presented by private stable coins and proxy CBDCs. As a stablecoin issuer, ARYZE has a unique perspective on the matter. We agree that the risks of rolling out a CBDC far outweigh the benefits, especially considering the lack of consensus among central banks on the definition and implementation of CBDCs. The current exploration into CBDCs appears to be an extreme reaction to the rise of cryptocurrencies and a fear of being left behind. However, we believe that the future of digital currencies lies in the democratization of money, where programmable money and stable coins can be issued in various formats without the direct involvement of national banks. Central banks cannot issue CBDCs as true programmable money that operates on open-source blockchains; this would enable people to trade them on third-party exchanges, inadvertently creating a new scarce instrument or forcing central banks to mint digital currency parallel to traditional printing. The paper rightly points out that launching a digital euro would put the European Central Bank (ECB) in a new position of offering a new payment instrument in competition with banks and other payment service providers. However, this is precisely the reason why central banks should not directly issue CBDCs. A government-issued CBDC would outcompete existing banks and payment providers, disrupting the established infrastructure. ARYZE believes in the potential of private stable coins and proxy CBDCs as a viable alternative. This approach supports the improvement of existing infrastructure and promotes interoperability among banks, central banks, and financial service providers. Countries like Denmark and Sweden have already adopted fully digital and modern infrastructures for digital money management, providing a model for other nations to follow. Contrary to the paper's assertion that a digital euro would not increase financial inclusion, we believe that Europe, particularly Scandinavia, should be at the forefront of digital currency innovation. By leaning on our legacy infrastructure and not pursuing new services and solutions, we risk falling behind countries like China that are forging ahead in the digital currency space. In conclusion, it is essential that we shift the digital currency paradigm away from direct central bank involvement and focus on improving existing infrastructure while embracing private stable coins and proxy CBDCs. This approach will not only mitigate the risks outlined in the European Parliament's paper but will also pave the way for a more efficient, inclusive, and innovative digital currency landscape. Board member, ARYZE