RMA (the Royal Monetary Authority) of Bhutan and Ripple are working together on the CBDC of the country. For the support of similar use cases, the test will be using Ripple’s own CBDC private ledger.
Most countries in the world are trying to regulate the expanding market of cryptocurrency. Each country is trying to improve the existing financial system by either making the CBDC of their fiat currency or complete a ban on the crypto market. A small South Asian country, Bhutan is trying to create the central bank digital currency (CBDC).
Bhutan and Ripple Partnership:
Bhutan and Ripple have partnered up to work on the CBDC of Bhutan also known as Ngultrum. This CBDC project is for the purpose of improving the access for the citizens to the financial system. Bhutan has a goal of providing these improvements to the citizens by 2023 and completes the 85% of the CBDC pilot project. The price of XRP has increased by almost 5%.
The deputy governor of RMI of Bhutan stated that they have chosen Ripple because they will be able to use their existing infrastructure. He further said:
Ripple’s groundbreaking technology will allow for the experimentation of a CBDC with our existing payments infrastructure — while ensuring efficient and cost-effective cross-border transfers.
Ripple is new to the test of CBDC, but they have done bank-related applications and many other projects. For this project Ripple will be using the private ledger, introduced by the company in March. VP of the Central Bank has also stated that he is thrilled to partner up with RMA.
Bhutan and Ripple partnership will grow and complete this project hopefully. CBDC doesn’t have the potential to replace the Crypto but surely can help people in access to the financial system. For more content please click here.