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CBDC platform for central banks and others
Ripple announced today that it has launched a new platform for CBDC (Central Bank Digital Currency) and stablecoin development.
The platform offers a suite of services and is intended for users such as central banks, governments and financial institutions. Users can issue, manage, trade and redeem CBDCs and stablecoins.
James Wallis, Ripple’s head of Central Bank and CBDC, explained:
We have already partnered with central banks in several countries and we believe this platform will be a solution for various central banks and governments that are developing plans and exploring technical strategies for CBDC implementation. ing.
The platform’s innovative features enable instant settlement of domestic and cross-border payments, reduce risk, and send and receive digital currency quickly to improve user experience.
What are CBDCs
A digital currency issued by the central bank of a country or region. It stands for “Central Bank Digital Currency”. The big difference from virtual currency is that CBDC is a legal tender. While it is expected to reduce costs and improve efficiency in currency management and settlement, there are many issues to be considered, such as protection of personal information and privacy, security measures, and impact on the financial system.
Cryptocurrency Glossary
Offers wallet functions
The platform announced today is an enhanced version of the private ledger introduced in 2021 for CBDC issuance. It still uses the XRP ledger (XRPL) but is powered by new energy efficient technology.
In addition, by using the operator function, institutions holding a large amount of digital currency can manage settlement and distribution functions between institutional users.
We also offer digital wallets for end users. Retail end-users, such as businesses and consumers, can safely store digital currency and pay for and receive payments for goods and services as they would with local payment and banking apps.
The wallet feature also offers offline transactions and smartphone-free use cases.
CBDC Partnerships with Countries
Ripple is in the process of forming partnerships with various countries, including the development of CBDCs.
Most recently, in January, it announced a partnership with the European country of Montenegro, located on the Balkan Peninsula. We have started a proof-of-concept project to build digital currencies and stablecoins.
connection: Eastern Europe Montenegro, Ripple and digital currency demonstration experiment
In addition, since 2022, we have been working on research and development of CBDC jointly with the Digital Euro Association (DEA), a think tank specializing in digital currencies. In 2021, we also started working with the central bank of the Kingdom of Bhutan to test payments and international remittances using Ripple’s CBDC ledger.
In 2021, we also have a partnership with the Republic of Palau, focusing on developing cross-border payments and US dollar-backed stablecoin strategies.
Republic of Palau President Slangel Whips Jr. said the partnership with Ripple is “part of our efforts to pave the way for financial innovation and technology that will provide broader financial access to our people.”
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