Ripple Could Be Best Solution For Central Banks Likely To Adopt CDBCs Soon

By Kevin • May 12, 2022 7:24 pm • Comments

A survey was just conducted by the Bank of International Settlements (BIS) which indicated that the majority of central banks around the world are likely to adopt the use of CDBCs within the next 6 years.

CDBCs stand for central bank digital currencies and the data shows that around 90% of central banks are already working on some form of CDBC work.

This is an impressive rate of adoption around the world which may have been accelerated by the pandemic and the growth of crypto over the past few years.

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When it comes to platforms that are designed to implement CDBCs, there are only a few choices with Ripple being at the top of the list.

So far, Ripple has been acting as an advisor for implementing CDBCs for several governments and regions so far due to its expertise in the area.

Ripple.com shares information about its CDBC platform:

Ripple offers a complete platform for minting, managing, transacting, and destroying CBDCs.

Each solution is built on private sidechains of the XRP Ledger—a proven blockchain that has transacted over 69 million times over the course of 10 years and is trusted by financial institutions around the world.

Our CBDC whitepaper provides guidance on CBDCs and explores how to ensure global interoperability.

Discover how to join the growing momentum behind CBDCs, develop common solutions, and ensure that the next evolution of money is more fiscally inclusive.

Build trust using the XRP Ledger’s proven technology, enabling consistent standards, privacy, and security.

Connect to domestic payment systems, core ledgers, and other CBDCs to reach new levels of innovation through programmability support and smart contracts.

Most of the countries that were surveyed were considered to have advanced economies and represented a majority of the world’s population.

This was very different from a few years ago where only a minority were interested in it.

CDBCs are also being explored in the aspect of how they can be integrated with existing financial and payments systems that are widely used today.

To test out the viability of CDBCs, several pilot programs have also already been conducted in several regions so far for international settlements.

CoinTelegraph.com reports:

The paper cited the emergence of several CBDCs, beginning with the launch of the Bahamian Sand Dollar in October 2020 and Nigeria’s eNaira one year later as well as the development of the Eastern Caribbean DCash and China’s digital yuan in 2021.

According to the BIS survey, more than 70% of central banks are also exploring CBDCs with “private sector collaboration and interoperability” for existing payment systems.

The BIS released a paper in April detailing how some central banks saw CBDCs as a catalyst for innovation and development while others expected the digital currency to work as a complement to existing systems.

In March, the international institution completed a pilot program for international settlements using CBDCs with the central banks of Australia, Malaysia, Singapore and South Africa.

Undisclosed sources have also claimed that Ripple has already onboarded several central bank clients which have not yet been revealed.

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