Ramping up its CBDC game, Ripple announced the launch of a new platform for central banks, governments, and financial institutions to issue their own central bank digital currency.
Dubbed ‘Ripple CBDC Platform,’ the offering will leverage the same blockchain technology used on the XRP Ledger (XRPL). The platform is developed to address multiple use cases, such as wholesale and retail CBDCs on a private ledger or issuing a stablecoin.
Ripple CBDC Platform
According to the San Francisco-based blockchain company, the aim is to “holistically manage and customize the entire life cycle of fiat-based central bank digital currency, transaction, and distribution.”
Following the development, James Wallis, Ripple’s VP of Central Bank Engagements & CBDCs, said,
“As a trusted partner to several central banks, we believe this platform will help solve problems for many central banks and governments who are devising plans and developing a technology strategy for CBDC Implementations.”
The exec added that innovative capabilities of the platform are expected to help 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.
As part of its global push for its CBDC platform, Ripple has onboarded the Republic of Palau to develop the country’s national digital currency on it. Surangel Whipps Jr, President of the Republic of Palau, commented,
“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.”
Interestingly, Palau’s and Ripple’s partnership dates back to November 2021, when the two parties announced teaming up to focus on developing strategies for cross-border payments and a USD-backed digital currency for the island nation.
Ripple’s Participation in Digital Hong Kong Dollar
In a parallel announcement, Ripple said it will demonstrate the use case for its CBDC platform through the inaugural e-HKD Pilot Program led by Hong Kong Monetary Authority (HKMA). 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.
The company has teamed up with Taiwan’s Fubon Bank to develop a product under the pilot program, with a focus on real estate asset tokenization and equity release leveraging the e-HKD.
XRP’s price remains trending upwards and has maintained its gains in an otherwise choppy market that has remained mostly flat over the past 24 hours.
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