sat 27 August 2022 ▪ 18:00 ▪
min reading – per
The cryptocurrency industry is hyper competitive and evolving very quickly. To stay on top, you have to innovate constantly. This is what Ripple (XRP) is doing with its Central Bank Digital Currency (CBDC) platform, whose mission is to promote the creation of applications for better financial inclusion. Ripple has chosen to innovate in order to remain competitive and timeless. To achieve this, it collaborates with several banking organizations around the world. Its goal is to evaluate their goals, in order to see to what extent its CBDC platform could help them.
What is so special about Ripple’s CBDC?
Financial institutions are perpetually in search of technologies offering complete solutions. To meet such expectations, Ripple offers a platform that integrates several advantages. The most important are the sustainability of payments, the acceleration of transfers and the promotion of inclusive financial frameworks for digital assets. Ripple relies on its XRP Ledger technology to offer a successful platform. Indeed, this blockchain is accredited with more than 70 million transactions in the last decade.
In addition, she received the approval of several banking institutions spread all over the planet. This brand of trust is not trivial, it is the fruit of several years of work. One of the features of the Blockchain XRP Ledger is its compliance with standards. The company ensures certain confidentiality and stability. The technology developed by Ripple is not only limited to banks, it is also aimed at fintechs and members of the public. Ripple’s CBDC is also able to connect your national payment systems to other CBDCs thanks to programming and smart contracts. Finally, it is a non-energy-intensive solution using a unique consensus mechanism.
An innovative and multifunctional technology at the service of banks
To take advantage of the platform, it is important to know how it works. As a reminder, business developers could set up CBDC applications at competitive prices on Ripple. It should be noted that the standard APIs support the integration of CBDCs into existing systems.
Banking organizations have the opportunity to strike CBDCs. And to achieve this, they can resort to cryptographic controls. When issuing CBDCs, issuers must give preference to authorized accounts. This is to prevent unauthorized persons from entering the possession of CBDCs. Thanks to its platform, Ripple allows fast transactions oscillating between 2 and 3 seconds.
There is an advantage to opting for the timelessness of Ripple, it facilitates cross-border interactive transactions as long as they are linked to a third-party CBDC. It is also possible to make redemptions on the platform for fiat money. Thus, banks can now have absolute control over the supply thanks to Ripple.
In short, Ripple’s CBDC platform takes care of safely destroying the currency, which offers a monopoly to the latter. Many partners continue to turn to Ripple to experiment with the innovation that has been triggered. Surangel Whipps Jr, the President of Palau attests that : “Partnering with Ripple to help create our national digital currency is part of our commitment to leading innovation and fintech. Which will offer Palau citizens better financial access”.
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PhD student in financial law and experienced SEO web writer, Cedrick Aimé is passionate about cryptocurrencies, trading, etc. He naturally participates thanks to his articles in the blockchain revolution on a daily basis for a better democratization of DeFi.