Ripple’s Anti-Bitcoin Campaign to Promote CBDCs

The push for central bank digital currencies is accelerating, with Ripple emerging as the player in this global effort. This creates a paradox: while supporters of cryptocurrency champion decentralization, Ripple’s central role in CBDCs signals a move toward more centralized control of digital currencies. As Ripple works with various governments and central banks to develop CBDCs, a tangled story unfolds involving environmental campaigns, bitcoin and grassroots activism.

Ripple is at the forefront of the CBDC revolution, engaging with governments worldwide to leverage its technology for digital currency development. In May 2023, Ripple launched a dedicated platform to assist central banks, governments and financial institutions in issuing CBDCs and stablecoins.

Ripple’s involvement in The Digital Dollar Project further strengthens its role in shaping the future of digital currencies. The DDP, an independent non-profit initiative, works closely with US 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 linked to efforts to discredit bitcoin through its financial support for Greenpeace USA’s “Change the Code” campaign. Launched on March 29, 2022, with $5 million from Ripple co-founder Chris Larsen, this initiative seeks to change bitcoin’s code under the guise of reducing its environmental impact.

On the same day, Larsen tweeted his support for bitcoin miners like Riot Platforms for its climate conscious efforts.

TwitterChris Larsen on Twitter: “Today the US hosts ~40% of the hashrate. Climate conscious miners like @GryphonMining, @ArgoBlockchain and @RiotBlockchain strive to use 100% renewable energy and be responsible actors (turning off power when networks being overloaded, etc.) I applaud their efforts / Twitter”

Yet the story takes a turn when investigating the actions of the Texas Coalition Against Cryptomining, a group campaigning against Riot Platforms, the largest bitcoin miner worldwide. Formed in April 2022, this coalition actively opposed 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 stated 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 the BBC and across various news outlets on 27 November 2023. Alex DeVries, the Dutch central banker behind Digiconomist, has been a vocal critic of bitcoin. His involvement in the coalition raises questions about his broader influence in the anti-bitcoin narrative.

Greenpeace USA, Ripple, and Alex DeVries, also known as the Digiconomist, were asked for comment on their involvement and support for these initiatives. Alex DeVries responded and expressed a willingness to discuss the topics further, but a detailed response was not received by the time of publication.

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The leader of the “Change the Code” campaign also participated in these protests with other Greenpeace members, 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 do strain local grids and water systems. When the proof-of-waste miners were finally asked to shut down, like magic, the grid stabilized.

A Riot representative responded to this assessment saying, “Not only does Riot use electricity and water incredibly efficiently – it helps stabilize the network. When power supply exceeds demand, miners can soak up the surplus; and when demand exceeds supply, they return energy to the grid. In effect, miners act as a shock absorber, ensuring a smoother ride for all network citizens. This is especially important given the large amount of interrupted power sources in Texas.”

This sequence of events raises questions. By funding campaigns that criticize bitcoin’s environmental footprint while promoting its technology for CBDCs, Ripple is strategically positioning itself as an obvious choice. Critics argue that this dual approach undermines bitcoin while strengthening Ripple’s relevance in the CBDC market.

Despite its efforts, Ripple faces challenges. Forbes labeled Ripple Labs a “crypto zombie,” citing its low active user base and speculative nature of its XRP token. The company’s primary mission to disrupt the global payments system, which is dominated by SWIFT, failed to materialize. Nevertheless, Ripple’s XRP token remains an important cryptocurrency by market value, driven largely by speculation rather than utility.

By aligning with environmental campaigns and pushing for CBDC adoption, Ripple aims to transform its chain from a zombie to a profitable network. However, the juxtaposition of his public support for sustainable practices and his funding of anti-bitcoin initiatives presents a complex story that warrants investigation.

“CBDCs will lead to a dystopian surveillance state where the government will have the ability to see every single 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 keep their own assets, strengthening constitutional freedoms. It’s shameful to see people trying to take profits from taxpayers while working to undermine their freedom, and at the same time, above all recognition, perverts the worthy cause of environmental conservation.”

The interplay between Ripple’s CBDC ambitions and its involvement in environmental campaigns against bitcoin illustrates a multi-layered strategy. While promoting CBDCs, Ripple’s chairman is funding efforts by Greenpeace USA, which runs the Change the Code campaign to change bitcoin’s code, which claims environmental benefits. The Change the Code campaign also supports the Texas Coalition Against Cryptomining.

Through a chain of intermediaries, Ripple’s top management funds and supports campaigns to discredit bitcoin mining. Ripple positions itself as an innovator and a critic within the digital currency space.