Ripple has recently introduced a new digital payments platform that is going to work for the government. This new digital payments network supports CBDCs rather than fiat currencies or other digital assets.
The project is created for serving the Central Banks. However, government institutions and other private financial enterprises might also be able to purchase and utilize it. The product is based on the consumer ledger technology.
A new press release from Ripple Labs has reported that this network has been equipped with the ability to issue and manage CBDC. It means that the digital payments network will be able to complete the cycle of financial transactions from point A to point Z without any external help.
It does not need to upload the CBDC printed by another program. It is going to be able to print new CBDCs as per the instructions of the current operators. It is worth noting that the platform is also able to print all types of CBDCs.
Ripple’s Digital Payment Network will Help Central Banks to Isuue Retail and Wholesale CBDCs
There are currently two main use cases for CBDCs. The first one is its ability to be used for retail transactions in the place of fiat currencies or legal tender. The second major utility for CBDC is its use for international trades that can be done with Wholesale CBDCs.
As per the press release issued by Ripple, this digital payment network can issue and manage both retail and wholesale CBDCs. At present, Ripple has partnered with various Central Banking enterprises across the globe.
Such that Ripple has been working with the countries that are working on issuing CBDCs under their jurisdiction. Central Bank Engagement and CBDCs VP, James Wallis has recently told the media this project is going to be useful for the Central banking enterprises that are working on a smooth transition to CBDCs.
He also claimed that this platform warrants instant payments for domestic and international settlements. He also maintained that this project can mitigate financial risks and better user experience.
Thus far around 11 countries in the world have formally introduced and launched their local CBDC projects. On the other hand, the G7 alliance is also inching closer towards CBDCs as per the report issued by the Atlantic Council.
The majority economic contribution of the world today is contributed by 114 countries. This group accounts for 95% of the total global GDP. At present, the vast majority of this stratum is working on CBDC projects.
On the other hand, only 35 nations have formally worked on a CBDC project. The topic of CBDCs is also very polarized in the USA. Last week, Ron De Santis the governor of Florida signed a bill to ban the arrival of CBDCs in the state.
He has made Florida the first anti-CBDC state in America. These types of movements are also gaining force in other red states. The anti-crypto movement entails that CBDCs are an instrument of authoritarian control of the government and the death of financial privacy for the masses. He has maintained that it violates the rights of US citizens by acting as a tool for financial surveillance.