InstaForex

September 24, 2021

Ripple Joins Bhutan For Central Bank Digital Currency Testing

 Ripple is reportedly working with Bhutan's central bank, the Royal Monetary Authority (RMA) to test the central bank's digital currency (CBDC) which will be launched soon.


It is said the nation’s central bank will use Ripple’s solution, CBDC Private Ledger along with the nation’s current payments infrastructure to conduct phased digital ngultrum testing for retail, cross -border, and wholesale payments.


"Our collaboration with Ripple aims to test the potential of CBDC in providing alternative and sustainable digital payment instruments in Bhutan." - Yangchen Tshogyel, deputy governor of the RMA.


Bhutan expects its population to achieve a financial inclusion of 85% by 2023. For the record, Bhutan has achieved a financial inclusion of 67.6% in 2019.



To date it has not been determined when the testing will begin. On Ripple's part, there are no further comments on this issue.


XRP Ledger or XRPL is a network that has a speed of 120,000 times much more efficient than a blockchain that uses consensus Proof-of-Work (PoW).


Not only that, the XRPL offers central banks flexibility and regulation without having to abolish monetary policy objectives and financial stability.


Since the introduction of XRPL, Ripple has made approaches with the cross -border sector, including collaborations with several other banks and financial institutions.


For example this year, SBI Ripple Asia, a joint venture between SBI Holdings and Ripple, has introduced the first international remittance service in Cambodia using blockchain.