- Ripple’s CBDC platform will leverage the same blockchain technology it uses to power the XRP Ledger
- It will promote access to millions of unbanked people
The vast majority of countries are implementing, exploring, or developing Central Bank Digital Currencies (CBDCs) to reduce the risk and cost of international and domestic payments and increase financial inclusion. Ripple launched the Ripple CBDC Platform for governments, central banks, and other financial institutions to issue CBDCs, Bankless Times learned from a press release.
Managing and customizing CBDC life cycle
Ripple’s platform will leverage the same blockchain technology it uses to power the XRP Ledger to enable customers to manage and customize the whole life cycle of fiat-based CBDCs as well as their transfer and distribution.
It will also promote access to millions of unbanked people across the globe.
Multiple use cases
Ripple developed its platform to address numerous use cases, including issuing stablecoins and retail and wholesale CBDCs on a private ledger. The platform offers users following:
Operator
This feature lets financial institutions who are holding large volumes of digital assets manage and take part in inter-institutional distribution and settlement.
End user wallets
Retail and corporate end users can hold their digital currencies safely and make and receive payment for services and goods, including in the event of offline transfers.
Issuer
Finally, the platform will allow financial institutions and authorities to mint, distribute, redeem, and destroy CBDCs in a safe and secure way, using the XRP Ledger’s integrated multi-signing capabilities.
James Wallis, VP of Central Bank Engagements & CBDCs, commented:
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. The innovative capabilities of the platform will help enable instant settlement of payments, reduce risk, and improve the user experience of quickly sending and receiving digital currency on either side of a transaction.
