Ripple takes the lead as it strikes a deal with Bhutan’s Central Bank to run a CBDC pilot program in the country.
Bhutan to Deploy CBDC Pilot Program
Through a Sep 22 release on its website, Ripple announced that to experiment with the CBDC(Central Bank issued digital currency) Bhutan’s Royal Monetary Authority or RMA has partnered with it. Ripple will provide its blockchain-based CBDC services to Bhutan, to develop countries Central Bank issued digital currency and to run a pilot program.
As per the statement the purpose behind potential inclusion of CBDC into countries financial infrastructure is to streamline transactions through increasing the percentage of adults having bank accounts from current 67% to 85% by the year 2023. Using Ripple’s CBDC ecosystem, the country will pilot retail, wholesale and cross-border use cases of Bhutan’s digital currency: Digital Ngultrum.
Ripple’s CBDC Ecosystem
Since Ripple has announced to run similar CBDC pilot programs in March, Bhutan is the Second country to join hands with it. Prior to that , in June, the Central Bank of Brazil announced a CBDC pilot program.
Ripple uses XRP private ledger to build and run CBDC. XRP private ledger is based on the same blockchain technology on which XRP public ledger(XRPL) operates. Further, both the ledger leverages Ripple’s native token XRP. Ripple says XRP private ledger enables central banks to “access a network of CBDC Ledgers that enables full settlement interoperability while ensuring monetary and technological independence,”
Ripple Takes Lead
A recent research by BIS(Bank of International Settlements) shows that 14% of the central banks are deploying pilot programs, 60% are experimenting with the technology, and 86% are doing research on CBDCS.
As for now Ripple seems to be taking the lead in the emerging market by being the earliest to assist CBDC pilot programs.