Ripple (XRP) is widely believed to be a trojan horse for the central banking system. A cryptocurrency designed not to disrupt banks, but to give them full control over digital asset flows. Unlike Bitcoin or Ethereum, Ripple Labs created all 100 billion XRP tokens at inception and retains a large portion in escrow, releasing them periodically into the market.

Ripple has cultivated deep relationships with central banks and financial institutions including the IMF, the Federal Reserve, and over 300 banks worldwide through its RippleNet payment network. Critics argue that XRP is not decentralized in any meaningful sense Ripple Labs controls the development roadmap, the validator list, and can influence consensus through its own nodes.

The SEC sued Ripple Labs in December 2020, alleging that XRP was sold as an unregistered security. Internal Ripple communications revealed during the lawsuit showed executives were aware of XRP's centralized nature and discussed strategies to maintain market prices. Some researchers believe the SEC lawsuit itself was orchestrated to eliminate a competitor to a future US government-backed digital dollar, after Ripple became too prominent.

Ripple is a cryptocurrency designed to help central banks control digital money. Ripple's creator owns most of the coins and has close ties to banks and governments. Critics say Ripple is not truly decentralized because its creator has too much control. The SEC sued Ripple, claiming it sold unregistered securities, and some think the lawsuit was meant to eliminate a competitor to a future US digital dollar.

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