Bhutan’s central bank, the Royal Monetary Authority (RMA) is collaborating with Ripple Labs, Inc. (Ripple) of USA, the leading provider of enterprise blockchain and crypto solutions for cross-border payments to pilot a central bank digital currency (CBDC) in Bhutan, using Ripple’s CBDC Private Ledger.
The teamwork is to enable the central bank adopt Ripple’s CBDC Private Ledger to enhance financial inclusion and accelerate digital payments. Deputy governor of the Royal Monetary Authority (RMA) in of Bhutan, Mr. Yangchen Tshogyel, says, the collaboration is an evidence showing the potential of CBDCs to provide an alternative and sustainable digital payment instrument in Bhutan.
The RMA’s commitment to developing a secure and robust payments system has cemented it as a leader in financial innovation, hence, Bhutan shares Ripple’s commitment to sustainability as the only carbon-negative country in the world.
The Central Bank Digital Currency ( CBDC) Private Ledger—based on the public, open-source XRP Ledger—is carbon neutral and 120,000x more efficient than proof-of-work blockchains. 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.
Ripple’s CBDC Private Ledger will enable central banks access a network of CBDC Ledgers that will enhance full settlement interoperability, while ensuring monetary and technological independence.
Mr. James Wallis, the Vice President of Central Bank Engagements at Ripple said, it is a pleasure and they are excitement to partner with the RMA on its CBDC agenda and again, to foster their shared values in creating a more sustainable, accessible, and financially inclusive reality.
Aside 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. Using blockchain and cryptocurrency technology, it creates powerful gains in financial efficiency, equity and inclusion.