A recent report from Ripple suggests that nine out of every ten central banks are researching CBDCs, with some of these central banks turning to Ripple for CBDC partnerships.
Central Bank Digital Currency (CBDC) is a concept that has been gaining traction in recent years. The COVID pandemic, a decline in cash payments, and the growing adoption of cryptocurrencies have played a part in the growing trend.
Ripple has highlighted the growing CBDC trend in its latest report. According to the report, nine out of ten central banks are actively exploring the possibility of launching a CBDC.
The report is based on a study conducted by the Bank for International Settlements. In the 2022 study, 81 central banks were surveyed. BIS reported that 90% of these apex banks are working on different stages of CBDC deployment.
Growing Global Adoption of CBDCs
The CBDC tracker of the Atlantic Council confirms the 2022 report from BIS. According to data from June 2023, 130 countries are in different stages of CBDC development. This figure represents 98% of the global GDP.
The Atlantic Council reports that 19 of the G20 countries are in advanced stages of CBDC development. In addition, 11 countries have fully embraced the CBDC technology.
China leads the pack, performing over $3.6 billion in monthly transactions with the digital yuan. Juniper Research confirms the growing trend, predicting that CBDC payments will reach $213 billion by 2030.
Central Banks Are Turning To Ripple for CBDCs
Ripple’s VP of CBDC, James Wallis, suggested that partnerships with the private and public sectors are essential to drive CBDC growth. According to him, the central banks can control the infrastructure while the private sector introduces the innovation.
In May, Ripple launched a platform to help central banks issue their CBDCs. Ripple’s CBDC platform allows central banks to mint, distribute, redeem, and burn tokens. In August, Ripple reported that eight central banks were already building on this platform.
The platforms offer apex banks more customizable and efficient CBDCs. The Ripple CBDC platform is powered by the XRP Ledger (XRPL). However, it is built on an independent private ledger.
Ripple explains that countries are increasing their adoption of CBDCs because the technology offers greater efficiency in both domestic and cross-border payments. CBDCs can also help them expand their financial inclusion by offering access to payments and credit products.
The increasing adoption of CBDCs will also be felt in the private sector. As a result, they have predicted that CBDCs have the potential to reshape the global banking and financial system.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
