Ripple Starts Platform That Allows Central Banks To Issue CBDCs• May 20, 2023 2:44 pm • Comments
It is clear that central banks around the world are already in the middle of testing the implementation of central bank digital currencies.
Ripple has also been able to see that demand and has started a CBDC platform that essentially allows banks and insitutions to issue their own CBDCs.
No other crypto company has ever done this before which makes Ripple ahead of everyone else when it comes to CBDCs.
Ripple’s platform will allow for the creation of the entire lifecycle of a typical CBDC which makes it extremely attractive for all financial institutions.
It is unclear what part XRP will take as part of this new CBDC platform, but it is certainly good news for Ripple itself.
With more than 90% of countries exploring and developing #CBDCs, we’re introducing the Ripple CBDC Platform, a frictionless solution for central banks, governments, and financial institutions to issue their own central bank digital currency.https://t.co/2bKkAJbx3F
— Ripple (@Ripple) May 19, 2023
Financial institutions would also be able to manage and participate in inter-institutional settlement and distribution functions using the CBDC.
Central banks can issue both wholesale and retail CBDCs, which can make offline transactions as well.
The platform is an enhanced version of Ripple’s Private Ledger, which was started in 2021 for issuing CBDCs. The platform is powered by the XRP Ledger, but was built on a new 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.
In addition to this news, Ripple has already worked with multiple banks and government when it comes to the development of CBDCs.
For example, Ripple has already onboarded the Republic of Palau to develop the country’s own digital currency.
This is not new information as this partnership was already completed back in 2021 which was over 2 years ago.
It is expected that many other partnerships with other countries are in progress right now which means that Ripple’s CBDC platform is high in demand.
It is possible Ripple’s growth in the space will indirectly also encourage adoption and growth for its crypto token XRP as well by extension.
— CoinDesk (@CoinDesk) May 20, 2023
In a parallel announcement, Ripple said it will demonstrate the use case for its CBDC platform through the inaugural e-HKD Pilot Programme 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.
— XRPcryptowolf (@XRPcryptowolf) May 19, 2023
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