Payment network Ripple is set to launch a central bank digital currency (CBDC) platform which allows central banks, governments, and financial institutions to issue their own digital currency.
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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.
Also Read: eNaira CBDC: Central Bank of Nigeria Introduces Voucher And USSD Features.
Central banks can issue both wholesale and retail CBDCs, which can make offline transactions as well.
The platform is an enhanced version of Ripple’s Private Ledger, which was started in 2021 for issuing CBDCs. The platform is powered by the XRP Ledger, but was built on a new private 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.
