According to Ripple, the CBDC private ledger will handle thousands of transactions per second.
Popular Blockchain Payment Firms Ripple Labs Inc Is set to launch its own central bank digital currency (cbdc) The platform, which will allow central banks, governments and financial institutions to issue digital currencies.
This news comes soon after Ripple and the Central Bank of Montenegro Agreed Cooperate on the development of a pilot project for a national digital currency.
The platform aims to equip central banks with the necessary technology and infrastructure to issue and operate their own CBDCs. Through Ripple’s CBDC platform, government agencies will be allowed to manage and optimize the entire CBDC lifecycle, including minting, distribution, redemption and token burning.
Additionally, the platform will enable financial institutions to administer and engage in inter-institutional settlement and distribution functions related to CBDCs. This could include facilitating the secure and efficient transfer of CBDCs between financial institutions, thereby enabling interoperability and settlement finality.
Furthermore, central banks can issue both wholesale and retail CBDCs, which can also be used to conduct offline transactions. This will enable users to transact with their CBDC even when they do not have an active internet connection.
However, it is worth noting that the specific features and capabilities of a CBDC, including offline transaction support, will be determined by the design choices and needs of each central bank.
Ripple said it will demonstrate use cases for the platform as part of the e-HKD pilot, a program of the Hong Kong Monetary Authority, which is de facto the central bank. In addition it is also Working with Taiwan’s Fubon Bank Tokenizing real estate assets and developing stock trading products as part of the e-HKD trial.
CBDC Platform Enhanced by Ripple’s Private Ledger
Specifically, the CBDC platform is an upgraded version of Ripple. private ledger, Launched in 2021 to issue CBDC. it is built on XRP Ledger but on a new private ledger.
Interestingly, Ripple is leveraging XRP Ledger, an open-source blockchain protocol, in its existing technology solutions. The firm has used the XRP Ledger for various applications including facilitating fast and efficient transaction settlement.
The CBDC Private Ledger will leverage Ripple’s existing blockchain technology, specifically the XRP Ledger, to enable central banks to securely and efficiently create and distribute their own digital currencies. The goal is to provide a holistic solution that meets the unique needs of central banks, such as scalability, security, and regulatory compliance.
According to Ripple, the CBDC private ledger will handle thousands of transactions per second. It compares hundreds of thousands of previous transactions per second. By collaborating with central banks to develop CBDCs, Ripple aims to support the modernization of the global financial system and promote the adoption of digital currencies.
In an effort to expand its commercial reach, Ripple paid $250 million to Metaco, a Switzerland-based firm to expand its remittance network into institutional bitcoin custody.
Benjamin Godfrey is a blockchain enthusiast and journalist who loves to write about real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies drives his contributions to well-known blockchain-based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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