Bitcoin
Ripple’s anti-Bitcoin campaign to promote CBDCs
Photo of Ripple and Bitcoin by Yuriko Nakao
Getty Images
The impulse towards central bank digital currencies is accelerating, with Ripple emerging as the player in this global effort. This raises a paradox: While cryptocurrency advocates advocate decentralization, Ripple’s central role in CBDCs suggests a move toward more centralized control of digital currencies. How Ripple collaborates with various governments and central banks To develop CBDCs, a tangled narrative unfolds involving environmental campaigns, bitcoin and grassroots activism.
Ripple is at the forefront of CBDC Revolution, engaging with governments around the world to leverage their technology for the development of digital currency. In May 2023, Ripple launched a dedicated platform to assist central banks, governments and financial institutions in issuing CBDCs and stablecoins.
Ripple’s involvement with The Digital Dollar Project further cements its role in shaping the future of digital currencies. DDP, an independent nonprofit initiative, works closely with U.S. policymakers and stakeholders to evaluate the design and implications of a potential digital dollar.
However, Ripple’s journey is not without controversy. The company has been associated with efforts to discredit bitcoin through its financial support of Greenpeace USA’s “Change the Code” campaign. This initiative, launched on March 29, 2022, with $5 million from Ripple co-founder Chris Larsen, seeks to change bitcoin’s code under the guise of reducing its environmental impact.
Greenpeace and Crypto Billionaire lobby to change Bitcoin code
Bloomberg UK
On the same day, Larsen tweeted his support for bitcoin miners like Riot Platforms for their climate awareness efforts.
Chris Larsen
X
However, the narrative takes a twist when examining the actions of the Texas Coalition Against Cryptomining, a group that campaigns against Riot Platforms, the largest bitcoin mining company in the world. This coalition, formed in April 2022, has been actively opposing Riot in Texas, citing environmental concerns.
The group’s activities include fundraising, organizing events, collecting petition signatures, testifying before the Texas Senate, and engaging with the media. They also received support from Greenpeace USA, which publicly supported their protests in October 2023.
On November 7, 2023, the Texas Coalition Against Cryptomining mentioned in an email that ‘Digiconomist is currently finalizing a comprehensive peer-reviewed study on proof of waste and water.’
This was followed by a related article published by BBC and in various media outlets on November 27, 2023. Alex DeVries, the Dutch central banker behind Digiconomist, has been a vocal critic of bitcoin. His involvement with the coalition raises questions about his broader influence on the anti-bitcoin narrative.
Greenpeace USA, Ripple and Alex DeVries, aka Digiconomist, were asked to comment on their involvement and support for these initiatives. Alex DeVries responded, expressing a willingness to discuss the topics in more detail, but a detailed response had not been received by the time of publication.
Greenpeace USA October 2023
The leader of the “Change the Code” campaign also participated in these protests along with other members of Greenpeace, further exposing the interconnected efforts between these organizations. The Texas Coalition Against Cryptomining expressed strong concerns about the impact of the Riot facilities, stating: “These facilities place a burden on local grids and water systems. When the waste-proof miners were finally asked to shut down, as if by magic, the network stabilized.”
A Riot representative responded to this review, stating: “Not only does Riot use electricity and water incredibly efficiently, it also helps stabilize the grid. When energy supply exceeds demand, miners can absorb the surplus; and when demand exceeds supply, they return energy to the grid. In effect, miners act as shock absorbers, ensuring a smoother ride for all citizens on the network. This is especially important given the large number of intermittent energy sources in Texas.”
This sequence of events raises questions. By financing campaigns that criticize Bitcoin’s environmental footprint While promoting its technology for CBDCs, Ripple strategically positions itself as an obvious choice. Critics argue that this two-pronged approach hurts bitcoin while strengthening Ripple’s relevance in the CBDC market.
Despite its efforts, Ripple faces challenges. Forbes labeled Ripple Labs as a “crypto zombie,” citing its low active user base and the speculative nature of its XRP token. The company’s primary mission of disrupting the global payment system, dominated by SWIFT, has not materialized. However, Ripple’s XRP token remains a important cryptocurrency in market value, driven largely by speculation rather than utility.
By aligning itself with environmental campaigns and pushing for CBDC adoption, Ripple aims to transform its zombie network into a profitable network. However, the juxtaposition of his public support for sustainable practices and his funding of anti-bitcoin initiatives presents a complex narrative that deserves close examination.
“CBDCs would lead to a dystopian surveillance state where the government would have the ability to see every transaction in our lives and take away anyone’s assets for political purposes,” said Lee Bratcher, president of the Texas Blockchain Council. “Bitcoin empowers people to be their own banks and custodians of their own assets, strengthening constitutional freedoms. It is shameful to see people trying to extract profits from taxpayers while working to undermine their freedom and, at the same time, distort beyond recognition the noble cause of environmental conservation.”
The interaction between Ripple CBDC ambitions and its involvement in environmental campaigns against bitcoin illustrate a multi-pronged strategy. In promoting CBDCs, Ripple’s president funds efforts through Greenpeace USA, which runs the Change the Code campaign to change bitcoin’s code, claiming environmental benefits. The Change the Code campaign also supports the Texas Coalition Against Cryptomining.
Through a chain of intermediaries, Ripple’s top executives fund and support campaigns to discredit bitcoin mining. Ripple positions itself as an innovator and critic in the digital currency space.