Ripple Unveils Blockchain Powered CBDC Platform As XRP Price Sustains Gains
Ripple announced the launch of a new platform for central banks, governments and financial institutions to issue their own digital central bank currency.
Dubbed the ‘Ripple CBDC Platform’, the offering will utilize the same blockchain technology used on the XRP Ledger (XRPL). The platform is designed 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 goal is to “holistically manage and align the entire lifecycle of fiat-based central bank digital currency, transactions and distribution.”
Following the development, James Wallis, Ripple’s VP of Central Bank Engagements & CBDCs, said
“As a trusted partner for several central banks, we believe this platform will help solve problems for many central banks and governments planning plans and developing a technology strategy for CBDC implementations.”
The executive added that innovative capabilities of the platform are expected to help facilitate instant settlement of both domestic and cross-border payments, reduce risk vectors and improve 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 boarded 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 give the people of Palau greater financial access.”
Interestingly, Palau and Ripple’s partnership dates back to November 2021, when the two parties announced collaboration to focus on developing strategies for cross-border payments and a USD-backed digital currency for the island nation.
Ripple’s participation in the Digital Hong Kong Dollar
In a parallel announcement, Ripple said it will demonstrate the use case for its CBDC platform through the first e-HKD pilot program led by the Hong Kong Monetary Authority (HKMA). It is also partnering with Taiwan’s Fubon Bank to build a real estate tokenization and equity distribution product under the e-HKD pilot.
The company has teamed up with Taiwan’s Fubon Bank to develop a product under the pilot program, focusing on real estate asset tokenization and equity release leveraging e-HKD.
XRP’s price continues to trend upwards and has maintained its gains in an otherwise choppy market that has remained largely flat over the past 24 hours.