Ripple launches CBDC platform to issue digital currency for governments
Ripple has emerged as a disruptive force in the blockchain and financial technology industries.
Ripple’s innovative approach to digital payments and remittances has changed the financial services sector forever, allowing for instantaneous settlements across borders.
On Thursday, May 18th, Ripple announced the debut of its central bank digital currency (CBDC), which would facilitate the introduction of digital currencies by governments, financial institutions, and central banks.
In addition, the CBDC may be used for inter-institutional settlement and distribution activities, which can be managed and participated in using this platform. The world’s central banks will be able to issue digital currencies for general circulation and institutional use.
The CBDC program launched by the Hong Kong Monetary Authority (HKMA) will demonstrate the platform’s potential via the e-HKD experiment. In addition to working with Fubon Bank of Taiwan, the XRP issuer is developing a tokenization and equity distribution solution for real estate assets.
Ledger Technology, Issuer, Operator, and End-user wallets are the four aspects Ripple highlighted in the press release for the Ripple CBDC Platform.
To issue CBDCs, Ripple created its Private Ledger in 2021; the CBDC platform is an upgraded version of that ledger. The XRP Ledger, developed by Ripple, is a public blockchain that is both decentralised and open source, enabling instant, cheap, and borderless exchanges of XRP, fiat currency, and other cryptocurrencies.
Meanwhile, “Operator” is a service that facilitates inter-institutional settlement and distribution activities for organisations that handle large quantities of cryptocurrencies.
Finally, the ‘End user wallet’ will help businesses and consumers keep their digital assets in one place and pay for products and services in the same simple way that they do with their bank’s mobile app.