• Home
  • Login
  • Register
Currency Insider
  • Home
  • Reading Library
  • CBDC Think Tank
SUBSCRIBE
No Result
View All Result
Currency Insider
  • Home
  • Reading Library
  • CBDC Think Tank
Currency Insider
No Result
View All Result

Ripple Helping Bhutan’s Royal Monetary Authority (RMA) With a CBDC Project

by CBDC Insider
September 27, 2021
in Asia, Business
Reading Time: 2min read
0
Ripple Helping Bhutan’s Royal Monetary Authority (RMA) With a CBDC Project
Share on FacebookShare on Twitter

California-headquartered FinTech firm Ripple has announced a partnership with the central bank of the Kingdom of Bhutan, which is a landlocked country in the Eastern Himalayas.

According to the blog post Ripple published last Wednesday (September 22), the basic idea of this partnership is to help Bhutan’s central bank (aka “Royal Monetary Authority”) “use Ripple’s CBDC solution to pilot a central bank digital currency (CBDC) in phases.”

As you may remember, on March 3, Ripple announced via a blog post that it was “piloting” a private version of the open-source public XRP Ledger (XRPL) to allow central banks to create and manage their own digital currencies. The XRP Ledger was created in 2012 by David Schwartz, Jed McCaleb, and Arthur Britto, and XRP is the native currency of the XRP Ledger.

RELATED STORIES

Digital Yuan Sales During Lunar New Year Up From Last Year, Online Retailers Say

Digital Yuan Sales During Lunar New Year Up From Last Year, Online Retailers Say

February 2, 2023
Kotak Mahindra Bank Implements RBI’s First Phase of Digital Rupee

Kotak Mahindra Bank Implements RBI’s First Phase of Digital Rupee

February 2, 2023

Back then, Ripple said:

  • more than 80% of the world’s central banks are “actively exploring some form of sovereign-backed cryptocurrency”
  • eventually there would be a wide range of central bank digitial currencies (CBDCs).
  • existing public blockchains cannot meed the needs of CBDCs since “a Central Bank requires more transaction privacy and control over its currency than a public ledger can offer,” which means that it is “most likely opt to create a CBDC on a private ledger that can also operate at the required scale.”

Ripple also explained in that March 2021 blog post why interoperability is crucial:

“Additionally, interoperability – the ability for a private ledger to connect with today’s existing global financial infrastructure, as well as other CBDCs and other digital currencies– will be critical. In fact, in its 2021/22 innovation program, the Bank for International Settlements identified interoperability for cross-border payments as a major priority for CBDCs.“

Ripple’s proposed solution to this problem is the CBDC Private Ledger, which uses the same distributed ledger technology as the XRP Ledger, which means that it is “built for payments” and “designed for issuing currencies”; XRP could then serve as “a neutral bridge asset for frictionless value movement between CBDCs and other currencies.”

Read more

Previous Post

OCC Nominee Envisions ‘Deliberately Radical’ Redesign of US Banking System

Next Post

e-Naira: How safe is Nigeria’s Central Bank Digital Currency?

Next Post
e-Naira: How safe is Nigeria’s Central Bank Digital Currency?

e-Naira: How safe is Nigeria’s Central Bank Digital Currency?

© 2022 CBDC Insider

No Result
View All Result
  • Home
  • Map
  • Reading Library
  • CBDC Think Tank
  • Partners
    • DEA
  • Login
  • Register