SNEAK PEEK

• Ripple allows central banks,  financial institutions and governments to issue their personal CBDCs. 
• The central bank digital currency platform uses the same blockchain technology as the XRP Ledger.
• Ripple will represent a real estate tokenization product as part of Hong Kong Monetary Authority’s program e-HKD pilot.

Ripple, the crypto solutions company, has begun a central bank digital currency platform to enable governments, central banks, and financial institutions to issue their personal digital currency.

The platform will allow government institutions to handle and customize the complete life cycle of the CBDC, which includes everything from minting to distribution, redemption, and token burning. Moreover, financial institutions would be allowed to handle and be a part of inter-institutional settlement as well as distribution functions by using the CBDC. Also, central banks can issue retail and wholesale CBDCs. 

The new platform is an improvised version of the private ledger of Ripple, which began in 2021 for the purpose of issuing CBDCs. Powered by the XRP Ledger, the platform was created on a new private ledger. 

The use case for the platform will be represented by Ripple under the e-HKD pilot, a program announced by the central bank of Hong Kong, the Hong Kong Monetary Authority. Furthermore, the XRP issuer is working with Taiwan’s Fubon Bank to create a product for real estate asset tokenization as well as equity distribution under the e-HKD pilot.

Vice President of Central Bank Engagements and CBDCs James Wallis said that, as a trusted partner to many central banks, they believe that CBDC’s platform will fix issues for various governments and banks to work out plans and form a technology strategy related to the implementation of CBDC. 

He added, the advanced abilities of the platform will allow immediate settlement of cross-border and domestic payments, enhance the user experience of sending and receiving digital currency quickly, and curb risks. 

President of the Republic of Palau Surangel Whipps Jr. shared that collaborating with Ripple to develop a national digital currency is part of their determination to dominate in both financial innovation and technologies. As a result, the people of Palau will have significant financial access.