The Ripple CBDC Platform leverages the same blockchain technology used on the XRP Ledger (XRPL).

Users will be able to use the XRPL technology to manage and customise the entire life cycle of a fiat-based CBDC, as well as how it will be transacted and distributed.

In addition, the platform will allow financial institutions holding significant amounts of CBDC to manage and participate in inter-institutional settlement and distribution functions.

James Wallis, vice president of Central Bank Engagements & CBDCs, said: “As a trusted partner to several central banks, we believe this platform will help solve problems for many central banks and governments devising plans and developing a technology strategy for CBDC Implementations.

“The innovative capabilities of the platform will help enable instant settlement of both domestic and cross-border payments, reduce risk, and improve the user experience of quickly sending and receiving digital currency on either side of a transaction”, Wallis continued.

CBDCs, growing in popularity

According to Atlantic Council, 11 countries have fully launched a digital currency, with China’s pilot set to expand to most of the country in 2023. Another 114 countries – representing 95% of global GDP – are exploring ways to implement a CBDC.

In an interview with RBI, Julia Demidova from FIS – a fintech company enabling nations to become “digital-first, real-time economies” – urged stakeholders to “stay ahead of the latest trends and innovation, including the evolution of real-time payments and the growing role of digital assets, including CBDCs.”

Surangel Whipps Jr, president of the Republic of Palau, welcomed the platform’s launch.

“Partnering with Ripple to help create our national digital currency is part of our commitment to lead in financial innovation and technologies, which will provide the citizens of Palau with greater financial access”, he said.