Ripple officially launches a proprietary platform for central bank digital currencies, allowing central banks, governments, and financial institutions to develop their own digital currencies. The technology is characterized as “a frictionless end-to-end solution.”
It’s also worth noting that the Ripple CBDC Platform is built on Ripple’s Private Ledger, which was initially used for CBDC issuance in 2021. Furthermore, it is built on the same blockchain technology as the XRP Ledger, which was created particularly for payments.
More Details About the Platform
According to James Wallis, Ripple’s vice president of CBDCs, “As a trusted partner to several central banks, we believe this platform will help solve problems for many central banks and governments who are devising plans and developing a technology strategy for CBDC Implementations.”
Moreover, Wallis has further asserted that the innovative capabilities of the respective platform will allegedly aid in enabling instant settlement of both domestic and cross-border payments, reducing risk, and improving the user experience of quickly sending and receiving digital currency on either side of a transaction.
In a press release, Ripple claimed that by utilizing the same blockchain technology that underpins the XRP Ledger, the ‘Ripple CBDC Platform’ is designed to enable users to “holistically manage and customize the entire life cycle of fiat-based central bank digital currency, transaction, and distribution.”
According to Wallis, “As a trusted partner to several central banks, we believe this platform will help solve problems for many central banks and governments who are devising plans and developing a technology strategy for CBDC Implementations.”
Financial Institutions’ Perceived Benefits
According to Ripple, the new platform allows government entities to control and customize every part of the CBDC’s life cycle, including creation, distribution, redemption, and removal from circulation.
Furthermore, financial institutions are expected to use the newly launched platform to manage CBDC distribution processes, whereas end users-both corporate and retail will be able to securely store their digital currencies and use them to purchase goods and services, similar to how existing payment and banking applications work. The crypto business went on to say that this covers the convenience of offline transactions as well as supporting non-smartphone settings.
Furthermore, the e-HKD pilot program, purportedly run by the Hong Kong Monetary Authority, which serves as the de facto central bank, will allow Ripple to showcase the platform’s potential. As part of the e-HKD pilot program, the cryptocurrency company is also working with Taiwan’s Fubon Bank to create a solution for tokenizing real estate assets and enabling equity distribution.