- Ripple Labs launched a new platform that allows central banks to issue their own digital currency.
- The firm will debut the platform at Hong Kong Monetary Authority’s upcoming e-HKD pilot program.
Enterprise blockchain solutions firm Ripple has unveiled a new crypto platform that enables central banks, governments and financial institutions to issue their own central bank digital currencies (CBDC).
The Ripple CBDC Platform leverages the power of the same blockchain technology used on the XRP Ledger. It will allow users to manage and customize the entire life cycle of fiat-based central bank digital currency.
Ripple to demonstrate new platform in HKMA’s e-HKD pilot program
According to a press release from Ripple Labs on 18 May, the Ripple CBDC Platform offers a new private ledger underpinned by XRPL’s core energy-efficient technology.
Moreover, the new platform will allow its users to manage the full life cycle of their digital currency. It includes processes like minting and distribution all the way to redemption and destruction.
Financial institutions that hold significant amounts of digital currency will also be able to manage and participate in inter-institutional settlement and distribution functions.
Speaking on the latest development, Ripple’s Vice President of Central Bank Engagements & CBDCs James Wallis stated,
“The innovative capabilities of the platform will help enable instant settlement of both domestic and cross-border payments, reduce risk, and improve the user experience of quickly sending and receiving digital currency on either side of a transaction.”
Ripple will also take part in the e-HKD pilot program that was commenced by the Honk Kong Monetary Authority (HKMA).
The blockchain firm will demonstrate the use cases of its CBDC Platform in the e-HKD pilot program. This will be done in collaboration with Taiwan’s Fubon Bank.
Ripple’s demonstration will include settlement of tokenized assets using a retail version of HKMA’s e-HKD central bank digital currency.
Additionally, the pilot program plans to explore real world use cases and implementation of a retail CBDC.
