Money

Ripple assists Bhutan in testing its CBDC

The Royal Monetary Authority of Bhutan partnered with Ripple to carry out tests of a digital currency from the mountain kingdom’s central bank.

In an announcement made Wednesday, Ripple Labs said that Bhutan’s central bank will leverage the company’s private ledger to issue and manage a digital ngultrum. According to Ripple, the move was motivated by the effort of the Royal Monetary Authority, or RMA, to improve cross-border payments, expand financial inclusion for its residents, and “Expand its commitment to sustainability as the only carbon negative country in the world.”

With a population of about 800,000, Bhutan’s gross domestic product amounted to $ 2.5 billion in 2020. Although many media outlets report on the “gross national happiness” the country as an alternative to traditional finance, thousands of Bhutanese citizens do not have access to a savings account or a credit card. The RMA said it plans to increase financial inclusion in the country by 85% by 2023 by making payments with a central bank digital currency, or CBDC, “easier, faster and more affordable”.

“Beyond privacy, the CBDC solution is also tailored to handle payments with the volume of transactions that a successful retail CBDC requires.” Ripple said. “This provides central banks like the RMA with the security, control and flexibility they need to deploy a CBDC without compromising financial stability or monetary policy objectives.”

The announcement comes more than six months after Ripple said it would test a private version of the XRP Ledger to offer central banks a solution to launch a CBDC. Bhutan is one of the first countries to benefit from this service.

Other CBDC pilot projects around the world continue, with Indian officials hinting that they will start rolling out a digital rupee in December, and Nigeria’s central bank planning to launch a digital currency by 2022. Nevertheless, China appears to be in the lead as it began testing its digital yuan in April 2020.

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TAMMY SEWELL

Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: Tammy@oicanadian.com Phone: +1 513-209-1700

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