Ripple’s CEO, Brad Garlinghouse, unveiled a significant step forward in the world of blockchain and digital currency by announcing a partnership with 10 governments to develop Centralized Digital Bank Currencies (CBDCs). This partnership aims to use Ripple’s blockchain technology to create and manage digital currencies issued by the government, which represents a significant improvement in the integration of crypto solutions with traditional banking systems.
“Ripple has invested in and is working with around 10 different governments around the world to create a central bank digital currency. I mean the central bank’s digital currency is a stablecoin, it’s just been issued by the government,” Garlinghouse revealed. Among the partnerships that have been disclosed, each represents a unique approach to adopting blockchain technology to suit specific national needs and circumstances.
Ripple’s Relationship With Governments Exposed
1. Bhutan: In September 2021, Ripple partnered with the Royal Monetary Authority of Bhutan to test CBDC in Bhutan. The collaboration aims to use Ripple’s technology to promote digital and cross-border payments, while also increasing financial inclusion in Bhutan. The project plans to use the existing XRP Ledger infrastructure, which is known for its low power consumption and durability.
2. Republic of Palau: Ripple and the Republic of Palau started a partnership in November 2021 to explore the development of a climate-friendly digital currency, which could serve as a USD-backed coin instead of a traditional CBDC. This relationship was mainly focused on creating alternatives that are compatible with the country’s environmental values and economic needs. This initiative demonstrated an exploration of how blockchain technology can be used to support sustainable financial development.
3. Montenegro: In April 2023, Ripple announced a partnership with the Central Bank of Montenegro to help launch a CBDC. The goals of this project included evaluating the functionality and potential of blockchain technology, analyzing the benefits and risks associated with digital currencies, and evaluating the impact on electronic payment systems. This partnership was also seen as a way to improve financial inclusion and modernize the country’s monetary policy.
4. Georgia: Ripple’s partnership with the National Bank of Georgia, announced in 2023, focuses on exploring Digital Lari. The partnership aims to explore the practical application of Ripple’s CBDC technology in improving the efficiency, security, and inclusiveness of Georgia’s public and financial sectors. This move marks an important step for Georgia in exploring the transformative potential of blockchain for economic development.
5. Colombia: In June 2023, Ripple partnered with Banco de la República (Colombia’s central bank) to explore the use of blockchain technology to improve the country’s advanced payment systems. The partnership is part of a wider pilot program led by Colombia’s Ministry of Information and Communications (MinTIC), which aims to educate civil society on the benefits of blockchain. This partnership aims to develop solutions that can significantly improve the transparency and efficiency of high value transactions in Colombia.
At press time, XRP traded at $0.49.
Featured image from YouTube / CNBC, chart from TradingView.com
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