A Manhattan-based publication American Banker focused on the financial industry, has revealed Ripple’s efforts in ensuring secure minting and distribution of Central Bank digital currencies and stablecoins.
The financial reporter noted that Ripple’s recent Central Bank Digital Currency (CBDC) platform launch is part of its preparation to bring these goals to fruition.
Ripple’s CBDC platform enables central banks, financial institutions, and governments to mint their digital currencies and stablecoins securely and seamlessly.
Ripple’s CBDC Launch And Focus
Ripple Labs launched its CBDC platform on May 18, 2023. In a press release, the developers stated that the platform will allow governments and other institutions to issue their digital currencies.
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The CBDC platform is an enhanced version of the original Private Ledger launched in 2021. This platform enables institutions to manage fiat-based CBDCs, including other activities such as minting and distribution.
The Republic of Palau is one of the early users of the platform. According to Palau’s President Surangel Whipps Jr., partnering with Ripple to help create a National Digital Currency is part of their commitment to leading financial innovation and technologies. He believes this innovation will provide Palau citizens with greater financial access.
Notably, American Banker believes that Ripple’s focus on CBDC development has successfully eliminated barriers common with cross-border payments harnessing blockchain technology.
Also, the Director of Business Development for CBDC, Joe Vollono, stated that the focus is on interoperability as it focuses on use cases for wholesale and retail CBDCs. He also believes that the platform is a continuation of RippleNet.
The Republic of Montenegro recently signed an agreement with Ripple to develop a digital currency strategy and a pilot program to launch their first digital currency.
Regarding this, the Centralna Banka Crne Gore (Central Bank Of Montenegro) Governor Radije Zugic shared his thoughts on the development.
The executive said that based on their commitment to following national banking trends, the CBCG remains committed to following an efficient financial system. He also expressed his desire to collaborate with the firm on their pilot project to create a CBDC or stablecoin.
Zugic expressed that they would carefully analyze the advantages and risks that CBDCs or national stablecoins could pose, considering the availability of electronic payment, security, and efficiency.
Ripple’s CBDC Platform Gaining Ground Rapidly
Ripple Labs remains at the forefront of the global payment industry hosting top financial institutions such as Tranglo, Moneywatch, Nium, and Corpay. According to a May 18, 2023 report, the firm is currently holding talks with over 20 countries on CBDC plans.
Ripple also continues to pursue the CBDC platform advancement and is ranked number 1 on Juniper Research’s competitor leaderboard for CBDC and Stablecoins.
Despite the legal tussles of the blockchain firm with the United States Securities and Exchange Commission (SEC), developmental activities are fully operational on the network.
Meanwhile, at the time of writing, XRP shows a price decrease of $0.5108, depicting a loss of 4.14% in 24 hours.
Featured image from Pixabay and chart from TradingView.com