Ripplethe company behind the XRP cryptocurrency, has in a press release announced that it will invest in “modernizing the carbon credit market” and that it will help remove CO2 from the atmosphere. Blockchain in cryptocurrencies should be an important part of this.
Carbon Credits op of XRP Ledger
In total invests Ripple $100 million USD. No specific destinations are mentioned, but the project’s overall goal is to mitigate climate change. Part of this is an initiative to develop financial products around carbon credits on the XRP Ledger (XRPL). The XRPL has the ability to accommodate other tokens in addition to XRP.
Carbon credits are licenses that companies can buy to emit a certain amount of greenhouse gas. Companies that help to make the world climate neutral receive these credits. They can then sell them to companies that need them. If they were put on the XRP Ledger, it would save on the consumption of the financial system that is required for this.
Efficiency, scalability, more transparency in the market and better verification of certain projects and companies are the main reasons, Ripple says.
Ripple has ook other plans
Ripple will also build a ‘portfolio of carbon credits for the long term’. The company aims to achieve climate neutral status by 2030 or earlier. However, it is not clear exactly what this means. Ripple CEO Brad Garlinghouse stated that the carbon credit contract markets are important for meeting the climate goals, in addition to reducing emissions.
Company announced in 2020 that it wanted to be carbon neutral by 2030. It says it is on track to be there by 2028. The company wants to invest in innovative techniques to remove carbon from the atmosphere. Blockchain projects and in market makers using blockchain are also part of the plan.
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