San Francisco-based blockchain company Ripple has unveiled a new platform for central banks, governments, and financial institutions to issue their own central bank digital currency (CBDC), called the Ripple CBDC Platform. The platform will use the same blockchain technology as the XRP Ledger (XRPL) and will offer solutions for wholesale and retail CBDCs on a private ledger or issuing a stablecoin. Ripple intends to manage and customise the entire life cycle of fiat-based central bank digital currencies, transactions and distribution with the platform.
Ripple’s Vice President of Central Bank Engagements & CBDCs, James Wallis, has praised the new platform and believes it will “help solve problems for many central banks and governments who are devising plans and developing a technology strategy for CBDC Implementations”. The platform is expected to facilitate instant settlement of both domestic and cross-border payments, mitigate risk vectors, and enhance the user experience of sending and receiving digital currency on either side of a transaction.
The Republic of Palau is one of Ripple’s clients that has onboarded to develop the country’s national digital currency on the platform. Palau’s President, Surangel Whipps Jr, said that partnering with Ripple to help create their national digital currency is part of the country’s commitment to lead in financial innovation and technologies, which will provide its citizens with greater financial access. Palau and Ripple began their partnership in November 2021 when they announced teaming up to focus on developing strategies for cross-border payments and a USD-backed digital currency for the island nation.
In addition, Ripple announced its partnership with Hong Kong Monetary Authority (HKMA) to demonstrate the use case for its CBDC platform through the inaugural e-HKD Pilot Programme. Ripple is also working with Taiwan’s Fubon Bank as part of the same pilot program to develop a product for real estate asset tokenization and equity distribution leveraging the e-HKD.
Despite the flat market over the past 24 hours, XRP’s price has remained trending upwards and has maintained its gains.
Ripple’s new CBDC platform is designed to offer solutions for central banks, governments, and financial institutions to issue their own CBDCs. The platform is expected to manage and customise the entire life cycle of fiat-based central bank digital currencies, transactions and distribution. Ripple already has several central banks as trusted partners and believes that the new platform will help solve problems for many central banks and governments who are devising plans and developing a technology strategy for CBDC implementations. The Republic of Palau is one of Ripple’s clients that has onboarded to develop the country’s national digital currency on the platform. Ripple is also partnering with Hong Kong Monetary Authority (HKMA) and Taiwan’s Fubon Bank to demonstrate the use case for its CBDC platform through the inaugural e-HKD Pilot Programme. The company is working with Taiwan’s Fubon Bank to develop a product for real estate asset tokenization and equity distribution leveraging the e-HKD. The price of XRP has remained trending upwards despite the market being mostly flat over the past 24 hours.