The Central Bank of Bhutan will use Ripple private CBDC ledger to monitor a central bank’s digital currency.
Based on its current payments infrastructure, the Royal Monetary Authority will use Ripple’s blockchain technology to conduct incremental tests for retail, cross-border and wholesale payments for a digital ngultrum.
“Our partnership with Ripple is a testament to the potential of CBDCs to provide an alternative and sustainable digital payment method in Bhutan,” said Yangchen Tshogyel, Deputy Governor of the Royal Monetary Authority of Bhutan. “With Ripple’s revolutionary technology, a CBDC can experiment with our existing payment infrastructure while ensuring efficient and affordable cross-border transfers.”
The most recent initiative follows the launch of the Global Interchange for Financial Transactions (Gift) system in Bhutan in 2019, which enables the electronic transfer of large quantities and wholesale payments. In March, Ripple began testing a private version of its open-source public XRP ledger for issuing central bank digital currencies.
The company says its CBDC Private Ledger will initially be able to process tens of thousands of transactions per second (TPS) with the ability to scale to hundreds of thousands of TPS over time. The company is also promoting the use of its in-house cryptocurrency, XRP, as a neutral bridge for smooth movement of value between CBDC and other currencies.