Earlier it was announced that the Ripple would join the Digital Pound Foundation in order to continue involvement with CBDC projects.
Ripple is one of the founding members of the Digital Pound Forum, an independent platform set up to help promote the implementation of digital currency in the UK. CGI, Electroneum, and Avalanche are other members.
Susan Friedman will serve as the provider’s representative – Head of Policy. She commented:
“We are excited to support the design and implementation of a digital Pound in partnership with the Digital Pound Foundation. The Foundation will help advance the UK’s goal to build a more inclusive and sustainable financial system.”
According to Ripple, over 80% of central banks are considering digital projects, such as CBDCs, which could see potential improvements to the monetary system. Due to this, the DPF could benefit from the payment network’s solution.
What factors led to Ditial Pound Ripple partnership
The U.S. Fed hinted that its own study about CBDCs would be released “soon.” Authorities in the U.S. are focusing on creating a dependable, trust-worthy digital asset. A whitepaper about CBDCs and stablecoins was published earlier this month by VISA.
Several crypto experts assume that these new centralized digital currencies will contribute to the crypto space, but others are dubious. Edward Snowden is concerned that CBDCs will annihilate savings and threaten wage earners.
A digital version of Bhutan’s national currency was designed by the Royal Monetary Authority (RMA) and Ripple. This is not the first time the blockchain provider has served as a host for such a project.
This initiative aims to “improve cross-border payments and increase financial inclusion efforts” by 85% in the next two years by incorporating digital technologies.
Bhutan is the only country in the world with a zero carbon footprint, proving that Ripple’s CBDC solution is the perfect match to Bhutan’s green policies.
“Ripple’s commitment to sustainability was important for Bhutan. The CBDC solution is carbon-neutral and, because it’s based on the public XRP Ledger, is 120,000x more energy-efficient than proof-of-work blockchains,” officials said.
Moreover, Ripple said Bhutan’s central bank would benefit from its network as it would provide “control over the issuance, management, privacy, and validation than they would get with public blockchains.”
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Advantages of Using Ripple(XRP)
- A quick settlement. The confirmation of transactions is extremely fast. In contrast to bank wire transfers that may take days to complete and Bitcoin transactions that take minutes or hours to verify, such transactions generally take a couple of seconds.
- Fees is extremely low. At current rates, Ripple transactions cost just 0.001 XRP, or a fraction of a penny.
- The network is very versatile. Additionally, Ripple can be used for cryptocurrencies, commodities, and other fiat currencies in addition to XRP.
- Financial institutions use this software. Businesses can also use it to conduct transactions. It shows this network has a more substantial institutional market adoption than most cryptocurrencies, with companies like Sanandar, Axis Bank and Yes Bank using it.