Bitrabo Editorial
The CEO of Ripple, Brad Garlinghouse, has announced collaborations with 10 governments to develop Central Bank Digital Currencies (CBDCs). These partnerships aim to utilize Ripple’s blockchain technology in the creation and management of government-issued digital currencies, marking a significant advancement in blending crypto solutions with traditional banking systems.
Garlinghouse stated, “Ripple has invested and is working with about 10 different governments around the world to do central bank digital currencies. I mean a central bank digital currency is a stablecoin, it’s just issued by the government.” Each disclosed partnership showcases a distinct approach to incorporating blockchain technology tailored to individual national requirements and circumstances.
Public Announcements of Ripple’s Government Partnerships
1. Bhutan: Ripple collaborated with the Royal Monetary Authority of Bhutan in September 2021 to pilot a CBDC in Bhutan, aiming to enhance digital and cross-border payments using Ripple’s technology and promoting financial inclusion. The project intended to leverage the XRP Ledger’s existing infrastructure known for its energy efficiency and scalability.
2. Republic of Palau: In November 2021, Ripple partnered with the Republic of Palau to explore the development of a climate-friendly digital currency resembling a USD-backed stablecoin rather than a traditional CBDC. This collaboration focused on creating alternatives aligned with the country’s environmental principles and economic needs, investigating how blockchain technology could support sustainable financial growth.
3. Montenegro: Ripple announced in April 2023 a collaboration with the Central Bank of Montenegro to assist in launching a CBDC. Objectives included assessing blockchain technology’s functionality and potential, analyzing digital currency’s benefits and risks, and exploring the impact on electronic payment systems to enhance financial inclusion and modernize monetary policies.
4. Georgia: Ripple’s partnership with the National Bank of Georgia, revealed in 2023, concentrates on testing the Digital Lari to enhance Georgia’s public and financial sectors’ efficiency, security, and inclusivity. This initiative signifies Georgia’s exploration of blockchain’s transformative capabilities for economic growth.
5. Colombia: In June 2023, Ripple collaborated with Banco de la República (Colombia’s central bank) to explore blockchain technology’s use in improving Colombia’s high-value payment systems. Part of a larger pilot program by Colombia’s Ministry of Information and Communications Technologies (MinTIC), this partnership aims to educate public entities on blockchain benefits and develop solutions to enhance transaction transparency and efficiency in Colombia.
As of now, XRP is trading at $0.49.