Ripple CBDC Development Efforts Spotlighted by American Banker

American Banker has recognized efforts put in by Ripple in terms of Central Bank Digital Currencies (CBDC) development.

American Banker, a Manhattan-based trade publication covering the financial services industry, has highlighted Ripple’s efforts in creating ways for dozens of digital currencies to work together.

According to a report yesterday, American Banker noted that Ripple recently launched its CBDC (Central Bank Digital Currency) Platform to achieve this goal. Through Ripple’s CBDC Platform, governments, financial institutions, and central banks can issue their own national stablecoins and digital currencies.

Ripple Now Focused on CBDC Development

American Banker emphasized that Ripple is focused on developing CBDCs for different financial institutions worldwide, having successfully eliminated the barriers associated with cross-border payments using its blockchain technology.

“Ripple already uses the distributed ledger technology that supports the XRP token to enable international payments for e-commerce,” the report stressed.

Meanwhile, Ripple aims to make various digital currencies interoperable using the newly-launched CBDC Platform. Per American Banker, Ripple’s CBDC Platform is designed to address the use cases of digital currencies for banks and other consumers.

The product possesses important issuers features for minting and distributing, redeeming and destroying coins, etc.

Joe Vollono, Ripple’s director of Business Development for CBDC, said the Silicon Valley-based blockchain company would focus on interoperability as it addresses the use cases for wholesale and retail CBDCs. 

It bears mentioning that wholesale CBDCs are designed for banks that transfer significant amounts of funds across borders. Per Vollono, the recently launched CBDC Platform is a continuation of RippleNet. 

According to Vollono, RippleNet has transformed into a platform for cross-border payments, offering crypto-native services like instant settlement, line of credit, and liquidity. The CBDC Platform builds upon this foundation.

Widespread Adoption of Ripple’s Solution

Ripple has played a pivotal role in the global payment industry. Top financial institutions, including Tranglo, MoneyWatch, SentBe, Nium, Corpay, etc., have adopted Ripple’s payment solution for cross-border settlements. 

In an exciting development, Tranglo, one of Ripple’s most prominent long-standing ODL partners, announced last month that it had processed over $1 billion using the On-Demand Liquidity (ODL) solution from Ripple.

Furthermore, several central banks have partnered with Ripple on CBDC pilot projects. They include the apex banks of Montenegro, the Republic of Palau and the Kingdom of Bhutan, among others.