According to Ripple, the CBDC’s private ledger will handle tens of thousands of transactions per second.
Popular blockchain payments company Ripple Labs Inc is set to launch a Central Bank Digital Currency (CBDC) platform that will allow central banks, governments and financial institutions to issue digital currencies.
This news comes shortly after Ripple and the Central Bank of Montenegro agreed to collaborate on developing a pilot project for a national digital currency.
This platform aims to provide central banks with the technology and infrastructure needed to issue and operate their own central bank currencies. Through Ripple’s CBDC platform, government agencies will be allowed to manage and allocate the entire CBDC lifecycle including minting, distribution, redemption, and burning of tokens.
In addition, the platform will enable financial institutions to manage and participate in settlement and distribution functions between institutions linked to CIB currencies. This could include facilitating the secure and efficient transfer of central bank digital currencies between financial institutions, and enabling interoperability and settlement finality.
Moreover, central banks can issue wholesale and retail CBDCs, which can also be used to conduct offline transactions. This will enable users to perform transactions with their CBDCs even if they do not have an active internet connection.
However, it should be noted that the specific features and capabilities of central bank digital currencies, including support for offline transactions, will be determined by each central bank’s design choices and requirements.
Ripple said it will demonstrate use cases of the platform as part of the e-HKD pilot, a program of the Hong Kong Monetary Authority, the de facto central bank. In addition, she is Working with Taiwanese Fubon Bank To tokenize real estate assets and develop equity trading products as part of the e-HKD experience.
CBDC platform powered by Ripple’s Private Ledger
It should be noted that the CBDC platform is an improved version of Ripple’s private ledger, which was launched in 2021 to issue digital cryptocurrencies. It is built on the XRP Ledger but on a new private ledger.
Interestingly, Ripple has been leveraging XRP Ledger, an open source blockchain protocol, in its existing technology solutions. The company has used the XRP Ledger for many applications, including facilitating quick and efficient transaction settlement.
The CBDC private ledger will leverage Ripple’s existing blockchain technology, specifically the XRP Ledger, to enable central banks to securely and efficiently create and distribute their digital currencies. The goal is to offer a comprehensive solution that addresses the unique needs of central banks, such as scalability, security, and regulatory compliance.
According to Ripple, the CBDC’s private ledger will handle tens of thousands of transactions per second. This compares to the previous hundreds of thousands of transactions per second. By collaborating with central banks to develop CBDCs, Ripple aims to support the modernization of the global financial system and promote digital currency adoption.
In an effort to boost its business reach, Ripple paid $250 million to Switzerland-based Metaco to expand its remittance network into institutional Bitcoin custody.
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Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about real-world applications of blockchain technology and innovations to drive public acceptance and global integration of the emerging technology. His desires to educate people about cryptocurrencies have inspired his contributions to popular blockchain-based media and websites. Benjamin Godfrey is a fan of sports and farming.
