Bhutan to use Ripple’s Private XRPL for CBDC

The Royal Monetary Authority (RMA) of Bhutan is partnering with Ripple to pilot a central bank digital currency (CBDC).

The RMA will leverage Ripple’s private XRP ledger to create a digital Ngultrum.

The partnership will explore how Blockchain technology can support financial inclusion in Bhutan – which the RMA aims to increase to 85% by 2023.

Ripple said in a press release on their website, that their CBDC platform is “custom-designed to handle payments at the volume of transactions required by a successful retail CBDC. 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.”

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Ripple appears to be an excellent solution for CBDC due to the fact that the platform is cost-effective, reliable and almost instantaneous.

Bhutan is the latest country to announce its plans to introduce a CBDC. Recently there has been a proliferation of countries exploring the option after recent encouragement from the Bank of International Settlements.