Ripple, the leading provider of enterprise blockchain and crypto solutions for cross-border payments, announced a collaboration with Bhutan’s central bank, the Royal Monetary Authority (RMA).
According to Japanese financial news outlet Nikkei, the collaboration aims to pilot a central bank digital currency (CBDC) using Ripple’s CBDC Private Ledger.
Bhutan’s current payment system will be integrated with the San Francisco-based company’s distributed ledger technology.
The RMA will utilize Ripple’s sustainable blockchain technology to test retail, cross-border, and wholesale payment use cases for a digital Ngultrum in phases, building on its existing payments infrastructure. This will help it meet its goal of achieving 85 percent financial inclusion in Bhutan by 2023.
According to CEO Brad Garlinghouse, his firm aims to build a platform that would enable various CBDCs to interface with one another.
The RMA’s collaboration with the Bhutanese Central Bank
The partnership seems to have been in the works for some time. Tashi Yezer, Bhutan’s central bank’s senior payments system officer, was one of the speakers at Ripple’s Swell webinar for the APAC area, which took place in April.
Ripple launched a private version of the XRP Ledger intended for central banks in early March, according to U.Today. The solution was marketed as being quick, energy-efficient, and dependable.
RMA’s dedication to a safe and reliable payment system
The RMA’s commitment to creating a safe and reliable payment system has established it as a financial innovation leader.
In 2019, the central bank introduced the Global Interchange for Financial Transactions (GIFT) system, allowing the electronic movement of vast amounts of money in bulk.
It also works in conjunction with the government’s Electronic Public Expenditure Management System (e-PEMS) to simplify government-to-bank transfers.
On the XRP Ledger, Ripple CTO David Schwartz has proposed the idea of federated sidechains, which would enable central banks to create their networks.
Central banks will use Ripple’s CBDC Private Ledger to connect to a network of CBDC Ledgers, allowing for complete settlement interoperability while maintaining monetary and technical independence.
Asheesh Birla, the general manager of RippleNet, stated in July that his team has been in talks with central banks for a long time.
Despite its legal problems in the United States, the troubled firm maintains that its business continues to thrive outside of the country.
