The Royal Monetary Authority (RMA), Bhutan’s central bank, announced that it will pilot a central bank digital currency (CBDC) in phases with Ripple’s CBDC solution.
Building atop the country’s payments infrastructure and capabilities, this new initiative will tap Ripple’s CBDC solution to support seamless retail, cross-border and wholesale payment use cases for a digital Ngultrum.
The RMA believes that easier, faster and more affordable payments, both domestically and internationally, will help it reach its goal of increasing financial inclusion by 85% by 2023.
In addition to the technology, Ripple said that its commitment to sustainability was important for Bhutan which has pledged to remain carbon neutral.
They said that the CBDC solution is carbon-neutral and, because it’s based on the public XRP Ledger, is reportedly 120,000x more energy-efficient than proof-of-work blockchains.
This move is driven by the nation’s desire to enhance digital and cross-border payments, expand financial inclusion efforts and extend its commitment to sustainability as the only carbon-negative country in the world.
Yangchen Tshogyel
“Our collaboration with Ripple is testament to the potential of CBDCs to provide an alternative and sustainable digital payment instrument in Bhutan.
Ripple’s groundbreaking technology will allow for the experimentation of a CBDC with our existing payments infrastructure—while ensuring efficient and cost-effective cross-border transfers.”
said Yangchen Tshogyel, Deputy Governor of the Royal Monetary Authority of Bhutan.
James Wallis
“We couldn’t be more thrilled to partner with the RMA on its CBDC agenda and foster our shared values in creating a more sustainable, accessible, and financially inclusive reality.
In addition to providing the full lifecycle of CBDC requirements, Ripple’s solution offers central banks the superior functionality and interoperability needed to implement global cross-border CBDC payments.”
said James Wallis, VP of Central Bank Engagements at Ripple.
Featured image: Photo by Kinshuk Bose on Unsplash
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