News and resources on digital currencies, crypto assets and crypto exchanges worldwide.
Ripple touts private version of XRP ledger as CBDC problem-solver

Ripple touts private version of XRP ledger as CBDC problem-solver

Ripple is piloting a private version of its public, open-source XRP Ledger for central bank-backed digital currency issuance.

The firm says it is currently engaged with central banks around the world to assess how a private version of the XPR ledger can be used to deliver full-scale digital currency issuance.

Ripple claims that its CBDC Private Ledger will be capable of handling tens of thousands of transactions per second (TPS) initially, with the potential to scale to hundreds of thousands TPSs over time.

The firm is also touting the use of its inhouse cryptocurrency XRP as a neutral bridge asset for frictionless value movement between CBDCs and other currencies. This is something of a bold claim for Ripple, which is currently being sued by the Securities and Exchange Commission over alleged securities violations relating to sales of XRP.

"We believe this solution will overcome the major challenges around creating and managing a sovereign digital currency," the firm maintains. "And we’re just getting started. We are also working on a fresh approach where central banks will be able to join a network of CBDC Ledgers that enables full settlement interoperability, while allowing each member to retain their monetary and technological independence."

Billing the latter initiative as a 'game changer, Ripple says it will release more details on how it might work in practice in the near future.

Comments: (3)

David Gyori
David Gyori - BANKING REPORTS, LONDON - London 04 March, 2021, 12:38Be the first to give this comment the thumbs up 0 likes

Very problematic. I bet on R3. But I respect Ripple and I look at Ripple as a VERY INNOVATIVE and SMART company. 

Christopher Williams
Christopher Williams - RTpay - Winchester Uk 04 March, 2021, 15:562 likes 2 likes

It could be an interesting way of assisting LMIC central banks to test their domestic CBDCs - which is where the linkage and technology could be of value. 

It might be best if Ripple set it up as a separate entity though, to avoid any interaction with current law suits? if so, it could be a good method for such CBs to counter any large currency stablecoins, particularly Diem.  

Roberto Garavaglia
Roberto Garavaglia - Innovative Payments & blockchain Strategic Advisor - Milan 04 March, 2021, 19:171 like 1 like

Might be it's too late ...
There are at least other three DLTs well positioned for backing CBDCs: Algorand, Corda, SETL.