Ripple is starting a central bank digital currency (CBDC) platform which allows central banks, governments, and financial institutions to issue their own digital currency.
Using Ripple’s platform government institutions can manage and customize the entire life cycle of the CBDC, which includes minting, distribution, redemption and token burning. Financial institutions would also be able to manage and participate in inter-institutional settlement and distribution functions using the CBDC.
Central banks can issue both wholesale and retail CBDCs, which can make offline transactions as well.
According to coindesk report, the platform is an enhanced version of Ripple’s Private Ledger, which was started in 2021 for issuing CBDCs. The platform is based on Ripple’s XRP Ledger.
Ripple will show the use case for its platform under the e-HKD pilot, a program run by the Hong Kong Monetary Authority, the de facto central bank. It is also working with Taiwan’s Fubon Bank, to build a product for real estate asset tokenization and equity distribution, under the e-HKD pilot.
Ripple, a prominent technology company, is set to launch an innovative platform for central bank digital currencies (CBDCs). This platform will enable central banks, governments, and financial institutions to create and manage their own digital currencies using Ripple’s technology.
By utilizing Ripple’s platform, government institutions will have complete control over the entire life cycle of the CBDC. This includes essential processes such as minting, distribution, redemption, and token burning. Financial institutions will also benefit from the platform, as they will be able to engage in inter-institutional settlement and distribution activities involving the CBDC.
Notably, the platform caters to both wholesale and retail CBDCs, offering a wide range of functionalities. In addition to facilitating online transactions, the CBDCs issued through this platform will have the capability to conduct offline transactions as well.
The foundation of this platform lies in Ripple’s Private Ledger, an advanced system developed by the company in 2021 specifically for CBDC issuance. To demonstrate the effectiveness of their platform, Ripple has chosen to showcase its capabilities through the e-HKD pilot program. This program is being carried out under the supervision of the Hong Kong Monetary Authority, which acts as the de facto central bank in Hong Kong. Furthermore, Ripple is collaborating with Taiwan’s Fubon Bank to explore the potential of real estate asset tokenization and equity distribution within the framework of the e-HKD pilot.
With the introduction of this CBDC platform, Ripple aims to revolutionize the way digital currencies are issued and managed. By leveraging their expertise and technology, Ripple seeks to empower central banks, governments, and financial institutions with the tools necessary to adapt to the evolving digital economy.