back Back

Ripple partners with RMA of Bhutan to pilot CBDC using private blockchain

By Leandra Monteiro

September 24, 2021

  • Bhutan
  • CBDC
  • central bank digital currency
Share

RippleRipple, the leading provider of enterprise blockchain and crypto solutions for cross-border payments, today announced a collaboration with Bhutan’s central bank, the Royal Monetary Authority (RMA), to pilot a central bank digital currency (CBDC) using Ripple’s CBDC Private Ledger.

Building atop its current payments infrastructure, the RMA will pilot retail, cross-border and wholesale payment use cases for a digital Ngultrum in phases using Ripple’s sustainable blockchain technology. Doing so will help accelerate its mission to increase financial inclusion in Bhutan to 85% by 2023.

“Our collaboration with Ripple is testament to the potential of CBDCs to provide an alternative and sustainable digital payment instrument in Bhutan,” said Yangchen Tshogyel, deputy governor of the Royal Monetary Authority of Bhutan. “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.”

The RMA’s commitment to developing a secure and robust payments system has cemented it as a leader in financial innovation. In 2019, the central bank launched the Global Interchange for Financial Transactions (GIFT) system which enables electronic transfer of large value and bulk payments. It also complements the government’s Electronic Public Expenditure Management System (e-PEMS) to streamline transactions between the government and banking systems.

In addition, Bhutan shares Ripple’s commitment to sustainability as the only carbon-negative country in the world. The CBDC Private Ledger—based on the public, open-source XRP Ledger—is carbon neutral and 120,000x more efficient than proof-of-work blockchains. What’s more, the CBDC Private Ledger provides central banks like RMA the security, control and flexibility needed to deploy a CBDC strategy without compromising its financial stability and monetary policy objectives.

“We couldn’t be more thrilled to partner with the RMA on its CBDC agenda and foster our shared values in creating a more sustainable, accessible, and financially inclusive reality,” said James Wallis, VP of Central Bank Engagements at Ripple. “In addition to providing the full lifecycle of CBDC requirements, Ripple’s solution offers central banks the superior functionality and interoperability needed to implement global cross-border CBDC payments.”

With Ripple’s CBDC Private Ledger, central banks will be able to access a network of CBDC Ledgers that enables full settlement interoperability, while ensuring monetary and technological independence.

Previous Article

September 24, 2021

JPMorgan Chase signs Thought Machine to partner in Core Modernization

Read More
Next Article

September 24, 2021

Loylty Rewardz and Innoviti to allow customers to ‘Pay by Points’ at stores

Read More








IBSi Daily News Analysis

cybersecurity

April 18, 2024

Bhutan

GCC banks bolster Cybersecurity measures to combat email fraud

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

April 18, 2024

Fime to support set up of UAE’s domestic card scheme

Read More

April 18, 2024

NPCI Bharat BillPay & SBI to streamline daily transit payments

Read More

April 18, 2024

APAC’s rising influence driving growth in the global payment gateways market, research reveals

Read More

Related Reports

Sales League Table Report 2023
Know More
Global Digital Banking Vendor & Landscape Report Q1 2024
Global Digital Banking Vendor & Landscape Report Q1 2024
Know More
Wealth Management & Private Banking Systems Report Q1 2024
Wealth Management & Private Banking Systems Report Q1 2024
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q4 2023
Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
close-link
Get your copy now! IBSi Sales League Table 2023