Ripple to help Bhutan test CBDC

The Royal Monetary Authority of Bhutan (RMA) has partnered with fintech company Ripple to pilot a central bank digital currency (CBDC).

🇧🇹 Announcing our partnership with the Royal Monetary Authority of Bhutan, which will use Ripple’s CBDC solution to pilot a digital Ngultrum!

Read more: https://t.co/iARAb39JAZ

— Ripple (@Ripple) September 22, 2021

Ripple is confident that the XRP Ledger distributed ledger technology and Ripple’s CBDC solution based on it can enable fast and inexpensive retail, wholesale, and cross-border payments.

The company believes that using the XRP Ledger gives central banks greater control over issuance, operation and privacy of CBDCs compared with public blockchains.

«In addition to privacy, the CBDC solution is also specifically designed to handle the volume of transactions needed for a successful retail digital currency. It provides central banks, such as the RMA, with the security, control and flexibility required to deploy CBDCs without compromising financial stability or monetary policy objectives», the statement said.

Earlier in 2021, Ripple said that they were discussing the use of XRP Ledger as the basis for CBDC with various central banks around the world.

In March, the company announced testing of a private version of its distributed ledger designed for this purpose.

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