Ripple, the payment protocol most famous for its native token XRP, has launched a new central bank digital currency platform (CBDC) that central banks, governments, and financial institutions can use to issue their own digital currency.
The platform will allow the state-level institutions to manage and customize each phase of a CBDC, including minting, distribution, redemption, and token burning.
- Managing and participating in inter-institutional settlement and distribution functions of a CBDC will also be possible for financial entities through the platform.
- Central banks will be able to issue both wholesale and retail CBDCs.
- The CBDCs issued on the platform will enable offline transactions.
- Ripple's new CBDC platform, powered by the XRP Ledger, will be an advanced version of its Private Ledger platform launched in 2021 to allow for issuing CBDCs.
- Ripple will display the use cases for its new platform as part of the pilot program of e-HKD, the CBDC of the Hong Kong Monetary Authority.
- In April, Ripple also signed a deal with the Central Bank of Montenegro for a project regarding the nation's digital currency.
- The collaboration will see the pair jointly developing a strategy and pilot program of a Montenegrin digital currency in the form of a CBDC or a national stablecoin.
- At the time, RippleX's vice president for central bank engagements and CBDCs, James Wallis, said they were in negotiations with dozens of central banks worldwide for CBDC projects.