Ripple Launches CBDC Platform for Institutions of Government and Finance

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By Degen Lipsa

Ripple has unveiled a new platform for developing blockchain-based digital currencies as it steps up its CBDC game after the Metaco acquisition.

In Hong Kong, Ripple Labs has introduced a new payment system for the central bank digital currency (CBDC). As part of Hong Kong’s new e-HKD (electric Hong Kong dollar) trial programme, the San Francisco-based payment protocol and exchange network will collaborate with Fubon Bank, a Hong Kong division of Taiwan’s Fubon Financial Holding Co. The pilot programme brings together a range of business stakeholders to examine potential uses for e-HKD and implementation challenges. The partnership between Ripple and Fubon Bank will provide CBDC-based solutions for equity releases and the tokenization of real estate assets.

Ripple launches CBDC

The Ripple CBDC Platform, dubbed “a frictionless end-to-end solution,” is based on Ripple’s Private Ledger, which was initially unveiled in 2021 for CBDC issuance. The XRP Ledger (XRPL), which was also primarily intended for payments, shares the same blockchain technology as this system.

“As a trusted partner to several central banks, we believe this platform will help solve problems for many central banks and governments who are devising plans and developing a technology strategy for CBDC Implementations,” said Ripple’s vice president of CBDCs James Wallis.

The platform’s cutting-edge features, according to Wallis, “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.”

According to Ripple, the programme would enable commercial banks in Hong Kong to provide streamlined loan services and more flexible payment options.

The HKMA stated in its announcement on Thursday that it will utilise the pilot to investigate potential uses for the e-HKD in six different categories, including full-fledged payments, programmable payments, offline payments, tokenized deposits, settlement of Web3 transactions, and settlement of tokenized assets.

The pilot programme to examine those use cases will involve participation from a total of 16 banks, payment organisations, and blockchain businesses. Along with HSBC, Standard Chartered Bank, Visa, Mastercard, and Ant Group’s Alipay, these include the government-owned Bank of China, China Construction Bank, and Industrial and Commercial Bank of China.

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