Bank Of England Mentions Ripple In New CBDC Paper• February 8, 2023 3:03 pm • Comments
The Bank of England just released a new consultation paper about the potential of the new digital pound which may one day serve as the country’s CBDC.
Central banks around the world are all looking into pilot programs for CBDCs so the Bank of England being involved in this is not a surprise for many.
What is considered extremely positive news for Ripple is the fact that the consultation paper specifically mentions Ripple’s technology as being part of essential innovation that comes from the private sector.
The specific role that Ripple would play is still unknown, but the company has always played an advisory role so far for the EU region when it comes to matters concerning CBDCs.
Given that Ripple is one of the top CBDC platforms in the market, it is likely that the company may play a role in the design or the implementation of the digital pound.
Bank of England work with Ripple for Crossborder Transaktion of the CBDCs. #xrp #xrpcommunity pic.twitter.com/3JpmWDvRCN
— Chaos Finanzwelt (@chaosfinanzwelt) February 7, 2023
What role Ripple will play in the project is relatively unclear at this time. However, the U.S. company is mentioned in the consultation paper under the heading “Enable private sector innovation” and in connection with RTGS (Real-Time Gross Settlement).
The report states that as part of the RTGS renewal program, the central bank is focusing on developing a roadmap for continuous improvement of the RTGS service in line with industry feedback and incorporating elements from previous feasibility studies and experiments.
In reference to this, the Bank of England cites two projects: a DLT proof of concept on which it worked with Baton Systems, Clearmatics Technologies Ltd, R3 and Token, and a cross-border synchronization project. This is where Ripple comes in:
Cross-border Synchronisation: a joint project with Ripple demonstrating that synchronised FX transactions in two different simulated RTGS systems can be achieved, leading to the incorporation of synchronisation functionality into the roadmap for renewal.
The exact timeline of the release of a digital pound is still unknown as it is not confirmed yet to the public for obvious reasons.
What is known is that the plans of creating a CBDC may finally be confirmed sometime in 2025, but that is just to get the green light on this new initiative.
It is clear that CBDCs is still in its very early stages in many regions in the world, but experts believe that the first regions to successfully reach mass adoption will get a head start in the industry.
With that being said, there are many concerns about privacy and scalability despite the worldwide interest from central banks.
As of now, XRPL’s ledger still appears to be the top choice for powering private CBDCs and it is known that many pilot programs are already using it.
If the central bank of UK does decide to go along with it, the clues indicate that Ripple will play a major role.
*Bank of England (#BoE) &
*The Digital Pound:
*A New Form of Money for Households and Business
*Consultation Paper February 2023 (#Ripple)
— Boncryp (🙏) (@boncryp) February 7, 2023
As reported by U.Today, blockchain behemoth Ripple is now in search of an engineer intern for its projects related to central bank digital currencies.
The person hired by Ripple will be dealing with creating prototype software on the basis of Ripple’s private CBDC Ledger powered by XRPL.
In September 2021, Ripple partnered with the central bank of Bhutan to help them build their own centralized digital currency, dubbed Ngultrum.
In March of the same year, the company released a white paper that explained how XRP Ledger could be used for building central bank digital currencies.
As reported by U.Today in late January, pro-Ripple attorney Jeremy Hogan shared several possible ways that XRP Ledger could be used by central banks for creating CBDCs.
Bank Of England Mentions Ripple In New CBDC Consultation Paper, Here’s Why https://t.co/8jUPeoXjOJ
— 🇳🇱 MackAttackXRP 🇳🇱 57K-Followers (@MackAttackXRP) February 8, 2023
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