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RIPPLE: Innovation in Central Bank Digital Currencies
Feb 27, 2023
thedinarian
March 01, 2023
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According to recent research from the Atlantic Council Tracker, the majority of the world’s Central Banks are seriously considering Central Bank Digital Currencies, with many projects already underway.

While the facts indicate that planning for and testing of digital forms of national currency are underway, actual implementation often lags behind due to lack of experience, understanding of use cases and specific applications.

In order to foster innovation and drive the development of CBDC applications, Ripple sponsored a CBDC Innovate Challenge in 2022. Enterprise and individual developers were encouraged to enter the challenge and develop CBDC applications using Ripple’s technology, in three categories:

  • Retail
  • Interoperability 
  • Financial Inclusion

The CBDC Innovate Challenge closed with a total of six winners (two from each category) at the end of 2022. The enthusiasm among developers surrounding the challenge was strong and Ripple received almost 500 entries.

CBDCs are Ideal for Innovation

Well-designed CBDCs, backed by the safety of Central Bank Reserves and country regulations, offer not only a secure and reliable means of performing digital transactions, they can also help to solve some of the world’s biggest challenges including financial inclusion and sustainability. 

With CBDCs, payments can be accelerated, banking and third-party transaction fees can be lowered and the environmental burdens of printing fiat currency—using paper and significant energy resources—can be eliminated. 

Jose Jesus Perez Aguinaga, conFIEL founder and CBDC Innovate winner highlights how CBDCs can be a stable, beneficial, and positive force for people around the world, stating that “with the adequate technology and controls in place, CBDCs can actually bring financial freedom to individuals.” 

For the Innovate Challenge, conFIEL developed a unique localized application, designed to be used by the Central Bank of Mexico. conFIEL explored building a retail CBDC on top of the XRP Ledger for Mexico’s Central Bank (Banxico) using SAT (Mexican tax authority) digital signatures called FIEL (or e.Firma). The use of the digital signatures verifies the identity of the users, thereby helping to prevent fraud and theft.

conFIEL is just one of the winning CBDC Innovate projects showcasing how CBDCs can be used to promote financial inclusion and fast, accelerated payments.

Powering Next-Gen Financial Services with CBDCs

CBDCs are uniquely positioned to drive innovation within the financial services industry and in other adjacent ecosystems. 

Community Loans enables users to give out and take uncollateralized loans in a peer-to-peer manner, incorporating a unique reputation-based system to establish trust. In his entry for CBDC Innovate, Community Loans developer Rahim Klaber, “tried to think about how users would interact with the application and what I would need from the users and went from there. Using CBDCs means that the users are (hopefully) already KYCed and handling fraud could also be simplified.” 

Rahim believes that CBDCs are an ideal platform for innovation thanks to their ability to be backed specifically by a nation’s central bank, and their ability to enable easier-to-build, interoperable financial systems.

Ripple’s CBDC Innovate Challenge aims to help drive accessibility to CBDCs as a platform for innovation within payments and financial services, with CBDCs acting as a gateway for individuals into different areas of web3. 

One example is the PeerPay app, created by CBDC Innovate winner Nestor Campos Rojas. PeerPay offers the unique ability to transact payments with a variety of digital assets. PeerPay is a payment system that allows anyone to transact money, send and receive different assets, see transfers, and manage an agenda of recipients. Nestor created PeerPay because he “believes that the future of payments has to be inclusive and interoperable.” 

CBDC Payment and Interoperability Apps

Two other specific entities to highlight from the CBDC Innovate Challenge include SpendTheBits and Checksum. Both applications provide a solution to enable CBDCs to work as a functional bridge between other digital assets.

“CBDCs hold great potential to revolutionize finance with impacts such as financial inclusion, reduced friction, near-instant settlement times, interoperability, and integration with enterprise and retail applications,” says SpendTheBits founder Jay Kambo, who conceptualized the project by leveraging a central bank monetary framework and perspective.

SpendTheBits (STB) is an application that allows retail users to make payments in multiple currencies including CBDCs, cryptocurrencies, and stablecoins. With SpendTheBits secure, interoperable payments can be made in seconds rather than days. The SpendTheBits application incorporates a CBDC Portal, the STB Mobile and Merchant App, and STB Exchange Portal to allow interoperability and liquidity. 

Checksum, developed by whirledlabs, specifically takes on a business-facing perspective with advanced payment features and user interface that enables enterprises to easily process checks, invoices, expenses, and payroll for B2B CBDC management. Ryan Molley from Checksum describes his experience with CBDC Innovate: “This was a tough challenge that attracted many skilled developers and interesting projects. The future is bright for the XRP Ledger. We are honored to have been selected as the Retail-facing Enterprise winner after two competitive phases. It is encouraging to see industry professionals considering innovative solutions to solve real-world problems.” 

A New Way to Fund Loans Using Digital Currency

The P2P Loans app (aka P2P-CBDC) offers the capability to provide loans for anyone with an XRP Ledger account. P2P CBDC is decentralized, open-source, fast, simple, and low-cost, making it accessible to anyone around the world. 

Chris Winkler, creator of P2P-CBDC shared his thought process in formulating his app: “For the 2022 CBDC Innovate challenge, we combined the unmet needs of people that don’t have access to financial services—like loans—with the global development of fast, secure and more accessible CBDCs. That’s when the fusion of our idea of P2P-loans with CBDCs on the XRP Ledger was born. The XRPL and its outstanding technology enables us to empower people to transform their lives by providing them with the exact financial services they need.” 

Creating New Opportunities in the Digital Asset Ecosystem

The financial ecosystem is ripe for change and innovation, with digital assets presenting a whole new world of transactions conducted between governments, institutions, and individuals on a daily basis. As such, CBDCs can help facilitate innovation through public and private sector initiatives to help encourage more widespread development and interest. 

CBDC Innovate will be returning in Spring 2023. Look for updates on ripple.com/cbdc for details and how to enter the challenge.

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thedinarian@thedinarian
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Still the best infographic about total #XRP circulation, updated. (SBI Holdings fiscal year end report)

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thedinarian@thedinarian
July 28, 2025
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PYTH: We'll Always Have Coldplay

Welcome back to The Epicenter, where crypto chaos meets corporate cringe.

But surprisingly, crypto has not been the most chaotic corner of the internet as of late.

That honor goes to the startup Astronomer, whose CEO’s cheating scandal broke the web in a glorious meme-fueled media frenzy. The company’s damage control? Hiring Gwyneth Paltrow as a “temporary spokesperson.” Do we think they’re grasping at straws or setting a new standard for PR?

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A few things that are also worth noting: Winklevoss vs. JPMorgan, Visa’s take on stablecoins, and Robinhood’s Euro drama that defies the chillness of eurosummer.

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— The Epicenter, powered by Pyth Network

 

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thedinarian@thedinarian
July 27, 2025
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4 Fintech Companies 💸& Things To Know About 🤔

The fintech revolution is reshaping the way we manage, invest, and move money, breaking down traditional barriers and empowering individuals worldwide. As financial technology continues to evolve at a rapid pace, a select group of innovative companies are leading the charge by offering groundbreaking solutions that redefine banking, payments, and digital assets. Whether you’re a savvy investor, an industry professional, or simply curious about the future of finance, discovering these trailblazing fintech companies is essential to understanding today’s dynamic financial landscape.

 

  1.  Alina Invest - The AI Wealth Manager for GenZ Women

Alina is aimed at women under 25 who identify as beginner investors. They're an SEC-registered investment advisor that charges $120/year for membership. The service "buys and sells for you" and gives up notification updates of recent transactions like a wealth manager would.

👉 Getting people to invest early is crucial to building long-term wealth. One thing that holds them back is a lack of confidence and experience. Being targetted "for beginners" and people who live on TikTok should appeal. I love the sense of "we're buying and selling for you." Funds always do that, but making it an engagement mechanic is very smart. The risk here is that building a wealth business will take decades for the AUM to compound. But the next generations, Wealthfront or Betterment, will look something like Alina.

2. Blue layer - The Carbon project funding platform

Bluelayer allows Carbon project developers to take from feasibility studies to issuing credits, tracking inventory, and managing orders. Developers of reforestation, conservation, direct air capture, and other projects can also directly report to industry registries. 

👉 Carbon investing and tax credits are heavily incentivized but need transparent data. By focusing on the developers, Bluelayer can ensure the data, reporting, and credits lifecycle is all managed at the source. This is smart.

3. Akirolabs - Modern Procurement for enterprise

Akiro is a "strategic" procurement platform aiming to help enterprise customers identify risks, value drivers, and strategic levers before issuing an RFP. It aims to bring in multiple stakeholders for complex purchasing decisions at multinationals. 

👉 Procurement is a great wedge for multinational corporate transformation. Buying anything in an enterprise that uses large-scale ERPs is a nightmare of committees and spreadsheets. Turning an oil tanker-sized organization around is difficult, but the right suppliers can have a meaningful impact in the short term. That only works if you can buy from them. Getting people on the same page with a single platform is a great start.

4. NeoTax - Automated Tax R&D Credits

NeoTax allows companies to connect their engineering tools to calculate available tax advantages automatically. Once calculated, the tax fillings are clearly labeled with supporting evidence for the IRS.

👉 AWS and GCP log files and data are a goldmine. Last week, I covered Bilanc, which uses log files to figure out per-account unit economics. Now, we calculate R&D tax credits. The unlock here is LLM's ability to understand unstructured data. The hard part is understanding the moat, but time will tell.

In an era where technology and finance are increasingly intertwined, these four fintech companies stand out as catalysts for positive change. By driving progress in digital payments, asset management, lending, and decentralized finance, they are not only making financial services more accessible and efficient—they are also paving the way for a more inclusive and empowered global economy. Staying informed about their innovations can help you seize new opportunities and take part in the future of finance.

 

👀Things to know 👀

 

PayPal issued low guidance and warned of a “transition year.” The stock is down 8% in extended trading despite PayPal reporting a 9% growth in revenue and 23% EBITDA. Gross profit is down 4% YoY. PayPal's total revenues were $29Bn for the year

Adyen reported 22% revenue growth and an EBITDA margin of 46% for the full year. Adyen's total revenues were $1.75bn for the full year. The margin was down from 55% the previous year, impacted by hiring ahead of growth.

🤔 PayPal’s Braintree (unbranded) is losing market share in the US, while Adyen is winning it. eCommerce is growing ~9 to 10% YoY, and PayPal’s transaction revenue grew by 6.7%. The higher interest rate environment meant interest on balances dragged up the total revenue figure. Their core business is losing market share. Adyen is outgrowing the market by ~12%.

🤔 The PayPal button (branded) is losing to SHOP Pay and Apple Pay. The branded experience from Apple and Shopify is delightful for users; it’s fast and helps with small details like delivery tracking. That experience translates to higher conversion (and more revenue) for merchants.

🤔 The lack of a single global platform hurts PayPal, but it helps Adyen. In the earnings call, the new CEO admitted their mix of platforms like Venmo, PayPal, and Braintree are holding them back. They aim to combine and simplify, but that’s easier said than done.

🤔 Making a single platform from PayPal, Venmo, and Braintree won’t be easy. There’s a graveyard of payment company CEOs who tried to make “one platform” from things they acquired years ago. It’s crucial if they’re going to grow that they get their innovation edge back. Adyen has one platform in every market.

🤔 PayPal’s UK and European acquiring business is a bright spot. The UK and EU delivered 20% of overall revenue, growing 11% YoY. Square and Toast don’t have market share here, while iZettle, which PayPal acquired in 2018, is a strong market player. Overall though, it’s yet another tech stack and business that’s not part of a single global platform.

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🤔 This is the headline every bank CEO fears. Oof. Shares of both banks have been down since the news broke, but this will no doubt involve crisis calls, committees, appearing in front of the regulator, and, finally, some sort of fine.

🤔 The "risk-based approach" has been arbitraged. A UK company with relatively low annual revenue would look "low risk" at onboarding. One business the FT covered looked like a small company at a residential address to compliance staff. They'd likely apply branch-level controls instead of the enterprise-grade controls you'd see for a large corporation. 

🤔 Hiring more staff won't fix this problem; it's a mindset and technology challenge. In theory, all of the skill and technology that exists to manage risks with large corporate customers (in the transaction banking divisions) are available to the other parts of a bank. In practice, they're not. Most banks lack a single data set and the ability for compliance officers in one team to see data from another part of the org. Getting the basics right with data and tooling is incredibly hard and will involve a multi-year effort. 

🤔 These things are rarely the failure of an individual or department; the issue is systemic. While two banks are named in this headline, the issue is everywhere. Banks need more data and better data to train better AI and machine learning. That all needs to happen in real-time as a compliment to the human staff. Throwing bodies at this won't solve the visibility issue teams have.

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thedinarian@thedinarian
July 27, 2025
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What is XAH and Xahau?

If you're new to XRP, you may have noticed some of us discussing another network named 'Xahau'.

It's Like XRP ... But Different

The Xahau network was created in 2023, and its starting point was the open-source code for the XRP Ledger. A small team of researchers and entrepreneurs decided to add smart contracts to the network code.


The XRP Ledger has no smart contract capabilities, by default.

To integrate smart contracts, the team decided to use an architecture that includes 'WASM' or 'web assembly' code. Each account can have up to 10 'hooks' installed that are triggered for transactions that match specific criteria. They can run before or after a transaction is processed. This enables a variety of use cases that do not involve the need to change the network's core code.

Hooks

A 'hook' is what is known as a smart contract that can be triggered in relation to a specific account and its transactions.

The term arises from the programming world, where it generally means "code that runs based on triggering conditions." In Xahau's case, it indicates code that is run before, or after, a transaction is processed.
 
Each hook must be installed on a specific account by the party that controls the account - i.e., the secret key holder.
 
What Can XAH Do That XRP Cannot?
 
The primary benefit from the use of hooks, is that the core network code does not need to be changed every time a new use case is identified. This means that additional use cases can be addressed immediately, with no requirement for intervening steps, such as:
  • Community review
  • Community approval
  • Amendment voting
All of those steps are eliminated with the use of hooks; new use cases can be addressed as fast as the code can be developed.
 
To read more about how hooks enables Xahau to handle more use cases than even the XRPL, you can read this article:
 
Key Differences From XRP
 
Other unique differences from the XRP Ledger include:
  • Much smaller supply ~612 million coins vs. 100 billion coins
  • XAH hodlers are rewarded at 4% of their account balance. There are no rewards for XRP.
  • Governance participants are incentivized
  • Payment channels available for user-created tokens (IOUs)
  • URI tokens instead of NFT tokens
Who's Who of Xahau?
 
The list of those that are either founders, or closely associated with the founding organizations, is extensive. Here are the names of three organizations mentioned in the whitepaper, or their current moniker:
  • Xaman (a.k.a. XRPL Labs)
  • Gatehub
  • InFTF (Inclusive Financial Technology Foundation)
There exists a long list of impressive developers, architects, and technologists among the Xahau inner circle. But the three names that people associate most prominently with the leadership of the Xahau network are Wietse Wind, Richard Holland, and Denis Angell. The links to their 'X' accounts are:
 
Friend Or Foe?
 
This topic is one of the most contentious.
 
While Ripple, the company with the largest stake of XRP, showed interest in hooks early on, they ultimately decided to advocate for a different approach; the use of an EVM-based solution (Ethereum Virtual Machine) to handle smart contracts on the XRP Ledger. This decision was met with consternation by the Xaman team that had worked with them for several years to advocate for the use of hooks.
 
You can read more about the 'business politics' part of this topic here:
 
So how do Xahau fans view the relationship between XRP and XAH?
 
The Xahau team - and many of its community members - advocate for the use of a 'dual-chain' solution to implement smart contracts. This can be accomplished by the use of 'listener' software, along with native Xahau hooks.
 
A proof of concept, developed by Denis Angell, has demonstrated that bi-lateral communication can work with a simple approach.
 
From an economic standpoint, every chain that has its own digital asset is a competitor; but the simple way to think about Xahau, is that a 'bunch of XRP geeks' decided to implement smart contracts on their own version of the XRP Ledger.
 
The team emphasized transparency along the way, and initially received support from the primary XRP stakeholder, Ripple. They published Xahau as open-source code that could, in theory, be back-engineered and integrated with the XRP Ledger. You can clearly observe the team's idealistic mindset in early marketing mistakes, where they named their digital asset 'XRP Plus' in an effort to emphasize the way that they viewed their creation. While this resulted in confusion - and even suspicion - in its early days, the team quickly pivoted, and named their digital asset 'XAH', which became its ticker symbol.
 
Synergy effects between the two camps speak to a genuine camaraderie, with many Xahau developers being open and willing to help with changes to the core XRP Ledger protocol. You can find many examples of this open dialogue on the 'X' platform.
 
How To Purchase XAH
 
If you wish to speculate by buying XAH directly, it is available in a variety of convenient locations, depending on where you are located. If you're in a country that is supported by Bitrue, you can directly purchase or trade XAH by using that exchange.
 
On January 20th, 2025, Bitmart announced that it supports trading of XAH for customers in their list of supported countries; And in late March, another major exchange announced that they would be supporting XAH trading pairs: Coinex.
 
If you're located in the United States, you can purchase XAH directly from a vendor known as 'C14'. The xApp for C14 is located in the Xaman wallet.
 
XRP Ledger geeks can also purchase XAH IOUs on the XRPL Dex and then convert them to 'real' XAH using a Gatehub bridge. This is available in countries that Gatehub supports.
 
Which XAH Accounts Should I Follow?
 
On the 'X' platform, there exists two major community groups for XAH fans:
In addition to the Xahau notables I've already mentioned in this article, my advice is to take a look at who is posting in the above two communities. There are many impressive leaders and entrepreneurs included. You should be able to find multiple 'X' accounts that reflect your interests.
 
Xahau Development Roadmap
 
Xahau leaders have published a roadmap for 2025 that lists their various goals for the ecosystem:
 
To read a detailed explanation for each item, refer to this: Xahau Roadmap Super Thread
 
One of the most incredible waypoints listed is 'JavaScript Hooks Implementation.' 🤯
JavaScript!
 
With the 'JavaScript Hooks Implementation', Xahau is making history; it will enable anybody that knows JavaScript to easily create and install a smart contract. While networks like Ethereum are impressive early movers, they require developers to learn a new language and syntax.
 
Xahau will soon open 'crypto smart contracts' to a group of developers that number in the tens of millions.
 
Project L-10K
 
Project L-10K is one of the most important items in the pipeline. L-10K refers to the effort to boost the throughput of Xahau consensus to over 10,000 transactions per ledger! This will benefit hosted projects such as Evernode, and future issued assets. Heading up the effort is Richard Holland, who provided a progress update to the community in late May of 2025:
 
To learn more about this ambitious effort, you can watch his full presentation here:
The Future Of Defi And Payments
 
Once you've seen the extensive list of use cases that XAH easily handles, it's truly inspiring. Xahau is everything that you love about XRP, plus a long list of more things to love. ❤️
 
Be an early adopter of XAH and the Xahau network! Join the community groups listed and follow the accounts that seem to reflect your own interest - speculator, developer, or crypto fan. You have a place in our community, no matter what your background or interests are. Welcome to the future of crypto Defi and Payments. 
 
Sources:
 
 
NOTE: Payment channels for IOUs is currently in amendment status for the XRP Ledger, authored by Denis Angel here:
 
 

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