Ripple is in talks with the Bank of New Zealand to talk about its crypto solution to develop Central Bank Digital Currencies (CBDC) based on XRP Ledger (XRPL).
Ripple and its XRP Ledger crypto solution to develop a CBDC with the Bank of New Zealand
Ripple is increasingly expanding its crypto solution based on XRP Ledger (XRPL) to develop Central Bank Digital Currencies (CBDC). This time around, the Reserve Bank of New Zealand is seemingly in negotiations.
BOOOOOOOOOM !!!!!
#RIPPLE has been communicating with the RESERVE BANK
OF NEW ZEALAND
for building CBDC’s utilizing the #XRPL. #XRP is taking over
globally and mass adoption is coming pic.twitter.com/ad7ikhPXWG
— EDO FARINA 🅧 XRP (@edward_farina) August 11, 2023
Essentially, the new XRPL solution uses blockchain and offers distinct advantages for CBDC development. In addition to its speed, security and scalability, XRPL can meet the stringent requirements of a Central Bank Digital Currency.
On the other hand, the Central Bank of New Zealand is also interested in using the transformation potential of digital currencies to its advantage, so as to integrate digital innovation into its financial systems.
Ripple and its XRPL crypto solution for the Reserve Bank of New Zealand
The Reserve Bank of New Zealand is not exactly the first central bank in the world to get in touch with Ripple to explore its XRPL crypto solution for CBDC.
Indeed, back in April, it was the Central Bank of Montenegro (CBCG) that wanted to use Ripple’s protocol.
And indeed, an agreement was signed between the parties to develop a pilot project to create a national CBDC or stablecoin.
As with New Zealand today, back in April the Central Bank of Montenegro talked about how the introduction of a digital currency would mean a further step toward digitization of financial services and greater financial accessibility for citizens.
Ripple is involved with the CBCG and the government of Montenegro, as well as the country’s academia, so that together they will test the blockchain for the creation of the CBDC.
The launch of the Ripple CBDC Platform
As early as last May, Ripple launched its CBDC Platform, with the intention of providing its end-to-end solution for central banks, governments, and financial institutions.
This platform is intended to be a response to the continued fast-growing global interest in CBDCs. Not surprisingly, it has been determined that about 90% of interested countries are also exploring, developing and implementing their own digital currencies.
The Ripple CBDC Platform enables central banks and governments to holistically manage and customize the entire lifecycle of their fiat currency-based CBDCs, including transaction and distribution processes. All of course leveraging XRP Ledger technology.
Beyond Ripple and XRPL technology, CBDCs are increasingly catching on globally. These last few days, the central bank of Russia announced that its tests of the digital ruble, the Russian CBDC, will be carried out by 13 banks and a small circle of their customers.
In Brazil, the CBDC project has already been launched, and they recently confirmed that the name is no longer “digital real,” but DREX.