Financial technology firm Ripple Labs has announced the launch of its Central Bank Digital Currency (CBDC) platform where financial institutions, governments, and central banks can mint their stablecoins and CBDCs. Notably, Ripple has been making several efforts toward driving accessibility for CBDCs as a platform for innovation and also to increase the adoption of national digital currencies.
This is a laudable project from Ripple seeing that many regions are currently in different stages of rolling out a potential CBDC. While some countries are still researching and exploring the possibility of launching their CBDC, others have started developing theirs. The last group is for those who have already implemented a CBDC design or a prototype and this group seems to be the smallest.
Considering where all of these countries are in their CBDC journey, Ripple is trying to fit in and ultimately become a solution provider for them.
Brooks Entwistle, the senior vice president of Customer Success and Managing Director of APAC and MENA at Ripple mentioned at a certain time that the firm was already in talks with about 20 countries about the implementation of their CBDCs.
Ripple CBDC Platform Leverages Same Technology as XRPL
The Ripple CBDC platform is modeled as a revised version of the XRP ledger (XRPL) which was introduced two years ago. Per a published statement, the CBDC platform will leverage the same blockchain technology as the XRPLedger (XRPL), therefore, users will be able to customize and manage the entire life cycle of fiat-based CBDC transactions and distribution.
When the Terra (LUNA) and UST stablecoin collapse caused an uproar in the crypto industry in 2022, Ripple noted that it had the capacity to accommodate stablecoins and CBDCs for a ton of people with XRPL. This confidence was fuelled by the heightened security, reliability, sustainability, and interoperability that has been built in the XRPL.
Also, XRPL has the capacity to accommodate a large volume of transactions with fast processing time and cheaper costs.