Ripple launches CBDC platform, Palau and Bhutan join collaboration

The payment network company Ripple has announced the launch of the Ripple CBDC platform, which enables central banks, governments, and financial institutions to issue their own central bank digital currencies. Leveraging the same blockchain technology used on the XRP Ledger (XRPL), it allows users to fully manage and create fiat-based central bank digital currencies, transactions, and issuance.

How Does Ripple's CBDC Platform Work

Ripple provides a comprehensive platform for minting, managing, trading, and destroying Central Bank Digital Currencies (CBDCs). Each solution is built on a private ledger based on XRP's distributed ledger technology, which has processed over 70 million transactions in the past decade. The operational process is as follows:

• Standard API support for integrating the CBDC platform into existing systems
• Banks can mint CBDCs using the encrypted multi-signature control of the CBDC platform
• Issuers can directly send CBDCs to authorized accounts, ensuring only valid participants can receive and hold CBDCs
• In many cases, transactions are completed within 2-3 seconds. Interoperability can be achieved for cross-asset and cross-border transactions when connected to another CBDC
• Participants can redeem funds on the CBDC platform back to the issuer in exchange for fiat currency
• The CBDC platform supports secure destruction of currency, allowing banks to have full control over the supply

Ripple Collaborates with Palau and Bhutan

Ripple is currently working with over 20 countries to develop CBDC initiatives, including Palau, Bhutan, and Montenegro.

Palau, one of Taiwan's diplomatic allies, announced a partnership with Ripple late last year to explore creating the world's first government-issued national stablecoin using the XRP ledger. President Surangel Whipps Jr. stated that many crypto-related projects, including government-issued stablecoins and Binance Pay, are underway on the island. Surangel Whipps Jr. said:

Working with Ripple to create our national digital currency is part of our commitment to lead in financial innovation and technology, providing more financial services to Palauan citizens.

The Royal Monetary Authority (RMA) of Bhutan established a partnership with Ripple in 2021 to pilot CBDCs using Ripple's CBDC solution in stages. RMA believes that simpler, faster, and more affordable payment methods, both domestically and internationally, will help achieve its goal of increasing financial inclusion to 85% by 2023. Bhutan will leverage speed, cost, and innovation advantages to support cross-border payments and tokenization to fulfill this mission.

Bhutan is also enthusiastic about blockchain technology: Bhutan Mining Madness? Forbes: Has Secretly Mined for Over Three Years

Ripple is also involved in the "Digital Currency" pilot program initiated by the Hong Kong Monetary Authority, playing a significant role in tokenized asset settlement. Despite facing legal challenges in the United States, Ripple is actively expanding its business overseas.

For more information on the Digital Currency, see: 16 Companies Selected for the "Digital Currency" Pilot Program, Ripple and Fubon Bank of Hong Kong Test Tokenized Asset Settlement