Ripple has launched a Central Bank Digital Currency (CBDC) platform in response to the growing interest and development of central bank digital currencies in various nations. This innovation emerges as over 90% of countries begin exploring, developing, and implementing digital currencies to enhance their economies, the financial sector, and promote financial inclusion.
Using Ripple’s new digital currency platform, institutions, governments, and central banks can design, manage and customize the entire life cycle of the CBDC, which involves everything from minting, distribution, redemption, and burning. Financial Institutions would also be able to engage in the distribution and settlement activities among themselves, using the CBDCs.
With the new Ripple Platform, CBDCs can be issued by Central Banks on a wholesale and retail basis, and Ripple’s platform also enables offline transactions.
Powered by XRP’s ledger, the platform Is an enhanced version of Ripple’s Private Ledger, which was started in 2021 for issuing CBDCs. Although the platform is powered by XRP’s ledger, it is built on a private ledger.
Ripple will show the use case for its platform under the e-HKD pilot, a program run by the Hong Kong Monetary Authority, the de facto central bank. It is also working with Taiwan’s Fubon Bank, to build a product for real estate asset tokenization and equity distribution, under the e-HKD pilot.
Speaking concerning Palau’s adoption of CBDC, and an intended partnership with Ripple, Surangel Whipps Jr, President of the Republic of Palau stated, “Partnering with Ripple to help create our national digital currency is part of our commitment to lead in financial innovation and technologies, which will provide the citizens of Palau with greater financial access.”
Ripple’s CBDC solutions were recently ranked number 1 by Juniper Research in their competitive leaderboard. The leaderboard is in a field of 15 CBDC technology providers. Ripple’s CBDC solutions were also top-ranked in CB Insights’ Best Blockchain Cross-Border Payments & CBDCs Companies.