Bank of England Mentions Ripple in Its Digital Pound Consultation Paper

The BoE mentioned Ripple in a recently published CBDC consultation paper.

Leading blockchain company Ripple has played significant roles in helping central banks in different parts of the world, including Bhutan. Following its considerable efforts towards the development of CBDC, Ripple was recently mentioned in the Bank of England (BoE) consultation paper on the digital pound, U.K.’s digital currency.

The BoE is looking to develop a digital version of the pound, which would eliminate the use of banknotes and coins in the United Kingdom. However, the BoE said it would decide whether to proceed with the plans highlighted in the consultation paper.

Ripple Mentioned in the Paper

According to the consultation paper published on February 7, the Bank of England highlighted that it has a joint project with Ripple. The BoE noted that the project aims to demonstrate that FX transactions synchronized in two simulated Real Time Gross Settlement (RTGS) systems can be executed.

Bank of England writes:

“Cross-border Synchronisation: a joint project with Ripple demonstrating that synchronized FX transactions in two different simulated RTGS systems can be achieved, leading to the incorporation of synchronization functionality into the roadmap for renewal.”

It bears mentioning that the project is part of the BoE’s RTGS Renewal Program, which it aims to utilize to develop a roadmap for ongoing improvements to the RTGS service. Although the BoE did not state whether it plans to partner with Ripple to develop the digital pound, there is a strong indication that the two could collaborate on the CBDC project following Ripple’s efforts in CBDC development.  

Ripple Strengthening Its CBDC Team

The development comes a week after Ripple announced it is looking to hire a blockchain engineer intern who will work on a series of CBDC-related projects. 

“We are looking for an intern to work on a number of projects that will drive up the level of engagement with central banks around the world,” Ripple said.

According to the Silicon Valley tech company, the new hire will be responsible for building prototype software solutions on the XRP Ledger (XRPL) to meet the needs of various central banks.

Notably, Ripple has been playing significant roles in CBDC development. In an interview last year, Ripple’s Senior Advisor disclosed that the company has partnered with the Republic of Bhutan, the Republic of Palau, etc., on different CBDC pilot initiatives.

“Ripple has several pilots in progress for CBDCs, including the Royal Monetary Authority (RMA) of Bhutan and the Republic of Palau,” Welfare said.

Recall that in NOV 2022, Ripple released a whitepaper guiding UK lawmakers in achieving a regulatory framework for the crypto industry.