Bitrabo Editorial
The financial industry publication American Banker has highlighted the efforts of Manhattan-based company Ripple in ensuring secure issuing and distribution of Central Bank digital currencies (CBDCs) and stablecoins. According to the report, Ripple’s recent launch of its CBDC platform will pave the way for achieving these goals.
Ripple’s CBDC platform is designed to enable secure and seamless minting and distribution of digital currencies and stablecoins by central banks, financial institutions, and governments.
Ripple’s CBDC Launch and Direction
Ripple Labs introduced its CBDC platform on May 18, 2023, as announced by its developers in a press release. The platform is an upgrade of the original Private Ledger launched in 2021, and it allows institutions to manage fiat-based CBDCs, including other activities like minting and distribution.
One of the early adopters of Ripple’s CBDC platform is the Republic of Palau, whose President, Surangel Whipps Jr, said that partnering with Ripple to help create a National Digital Currency is part of their commitment to leading financial innovation and technologies. Whipps believes this innovation will provide Palau citizens with greater financial access.
Ripple’s focus on CBDC development has successfully cleared the common obstacles of cross-border payments by harnessing blockchain technology, as noted by American Banker. The Director of Business Development for CBDC, Joe Vollono, stated that the platform focuses on use cases for wholesale and retail CBDCs while prioritizing interoperability. He also believes that the platform is a continuation of RippleNet.
The Republic of Montenegro recently signed an agreement with Ripple to create a digital currency strategy and a pilot program for their first digital currency, as reported in the article. The Governor of Central Bank Of Montenegro, Radije Zugic, expressed his support for the pilot project and Ripple’s focus on CBDC development. However, he emphasized the need to analyze the advantages and risks of CBDCs or national stablecoins while considering the availability of electronic payment, security, and efficiency.
Ripple’s CBDC Platform Growth
Currently, Ripple Labs is holding talks with over 20 countries on CBDC plans according to a report. Furthermore, Ripple continues to pursue the advancement of its CBDC platform and is ranked number 1 by Juniper Research on the competitor leaderboard for CBDC and Stablecoins.
Despite the company’s legal battles with the US Securities and Exchange Commission (SEC), developmental activities on the network remain fully operational, as stated by the article.
As of writing, XRP, Ripple’s cryptocurrency, has decreased by 4.14% in 24 hours to a price of $0.5108.
Featured image from Pixabay and chart from TradingView.com