With some of the top economies across the world exploring central bank digital currencies (CBDCs), blockchain firm Ripple has unveiled the Ripple CBDC Platform as an end-to-end solution for governments, central banks, and financial institutions to issue their own CBDCs.
The Ripple CBDC platform will provide a way to increase financial inclusion and cut the risk of domestic and cross-border payments. Ripple will leverage the power of blockchain technology used for the XRP Ledger and will allow stakeholders to manage and customize the entire life-cycle of fiat-based CBDC, transactions, and distribution.
As a result, the Ripple CBDC Platform will allow governments and central banks to overhaul their financial services with digitization while promoting access to millions of people across the world. Surangel Whipps Jr, President of the Republic of Palau, praised Ripple’s CBDC Platform while explaining how it’s helping them to build their own solutions. He said:
“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”.
Key Benefits of the Ripple CBDC Platform
As said, the Ripple CBDC Platform takes a holistic approach to addressing multiple use cases such as issuing wholesale and retail CBDCs on a private platform as well as issuing a stablecoin. Here are the benefits the platform offers:
- Ledger Technology: Ripple has built its CBDC platform on a private platform powered by the XRPL’s core energy-efficient technology.
- Issuer: It will allow issuers (governments or central banks) to manage the full life-cycle of their fiat-based digital currency. This includes right from minting and distribution all the way to redemption and destruction. Also, the Ripple CBDC Platform leverages XRP Ledger’s built-in multi-signing capabilities to offer high-end security.
- Operator: Ripple shall also allow financial institutions holding significant amounts of digital currency to manage as well as participate in inter-institutional settlement and distribution functions.
- End User Wallets: Corporate and retail end users of digital currency can also hold their currency securely and use them further to pay and receive payment for goods and services just like that provided by banking apps today. This includes offline transactions as well as non-smartphone use cases.
The announcement of the Ripple CBDC Platform comes as the company became the only platinum partner in the global CBDC Symposium last month.
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