Welfare said he would reveal more of Ripple’s CBDC announcements soon.
Leading Silicon Valley tech company Ripple is a global payment provider, and its payment solutions have been widely adopted across borders.
While several corporate entities, like SBI Holdings, have partnered with Ripple for cross-border settlements, a few countries have selected the fintech company for Central Bank-backed Digital Currency (CBDC) projects.
In a recent interview, Anthony Welfare, Ripple’s Senior Advisor, revealed that the blockchain company is currently working on various CBDC pilots for nations like Bhutan and the Republic of Palau.
“Ripple has several pilots in progress for CBDCs, including the Royal Monetary Authority (RMA) of Bhutan and the Republic of Palau,” Welfare said in a recent interview.
He added that the major focus of RippleX is not only to allow developers to build on the XRP Ledger but to partner with top firms and countries for different initiatives, including CBDC.
“For Ripple, Crypto is in our DNA: our RippleX business unit is focused on making it easy for developers to build on and with the XRP Ledger, as well as partnering with others in the crypto space on use cases like NFTs and CBDCs (aka tokenized assets),” Welfare added.
A prominent Ripple supporter Crypto ERI shared the development on Twitter, drawing the attention of other XRP holders to the news. Interestingly, the tweet attracted not only the attention of XRP holders but also Welfare, who disclosed that Ripple would make more CBDC announcements in the coming weeks.
Thanks @sentosumosaba for the mention – make sure you follow me for more CBDC announcements in the next few weeks 👌👌👌
— Antony Welfare (@AntonyWelfare) September 6, 2022
Significance of the Initiative
Welfare’s comment is considered massive to the XRP holders, given the importance of the initiative to the crypto asset. In a recent video shared by Ripple, the company noted that all new CBDC solutions would leverage XRPL for cross-border settlements.
according to Ripple Team:
“At ripple, we enable governments and central banks around the world to create new high-performance financial infrastructures built on blockchain technology more specifically; we help governments build and launch central bank digital currencies or CBDC.
These national currencies are powered by modern secure, centralized, and scalable technology. These CBDCs will enable central banks to implement their monetary policies more efficiently and effectively.
The Ripple team brings a wealth of expertise to every new CBDC solution working with hundreds of financial institutions, policymakers, and regulators; our solutions facilitate billions of dollars in cross-border payments around the globe.
Ripple’s CBDC solution is based upon one of the most reliable, sustainable, and open-source blockchain protocols, the XRP ledger (XRPL).
The XRP ledger technology is perfect for CBDC blockchain applications. It’s fast, with transactions completing two to three seconds, and it’s easily customizable and programmable. it’s reliable, having closed over 72 million transactions since 2012.
The ledger’s native functionality for issuing digital currencies also reduces the need for bespoke programming and reduces the risk. Finally, the technology is sustainable as one of the first carbon-neutral blockchains; each pilot is completely customizable and shaped to the needs of the central bank by an expert team.”
The more countries choose Ripple as their official CBDC partner, the more it will increase the adoption and utility of the XRP coin, which has been on a massive decline following the ongoing lawsuit between Ripple and the SEC.