Ripple, a global payments solution provider, made an official announcement about its new endeavor that focuses on creating a similar format based on its native XRP ledger. This pilot project is set to create a wave in the Central banking system by enabling them to create and run their cryptocurrencies. According to the media reports, this new private ledger project will be powered by the existing XRP ledger’s synergy with Ripple and Interledger protocols that will develop a new system of payments network for Central Banks.
RippleNet took to the blog to explain further and brought an interesting viewpoint to the surface. It mentioned that more than 80% of the banks are looking forward to venturing into the Crypto Market, and the company has captured this opportunity through the pilot project. The rationale behind entering into Central Bank Digital Currency (CBDC) space is to bridge the gap between the demand for systems governing CBDC and the lack of efficient technology to build global solutions.
As per the news reports, this move will help create the same consensus protocol, which is similar to the existing version available with Ripple, which will prove economical and 61,000 times more productive. Since the CBDC project will imitate the functioning of Ripple’s existing Public ledger, XRP, it will be able to introduce new digital currencies, including 5400 currencies that are now available on the XRPL system.
According to the company’s blog, this CBDC project will ensure fast transactions, lower fees, and secured payment transactions. The CBDC private project is based on a draconian security system that can be altered to suit the rules and regulations of different jurisdictions. What makes the project reliable is its original version, XRP, which has proved its mettle for 8 years and supported enormous amounts of transactions consistently.
News media reports claim that tens of thousands of transactions will be processed initially, and later this speed will increase to processing hundreds of thousands of transactions every second. It also mentioned the shortcoming in this arena that it intends to focus on. There is a need to move from public ledger to private ledger because Central banks will require more private and secured networks for efficient and secured payments networks. New CBDC has to ensure compatibility across all the global platforms. As highlighted by the Bank of International Settlements, the CBDC project will emphasize building highly compatible infrastructure to support global transactions.
Ripple believes that leveraging blockchain technology’s potential to connect the widespread nexus of payments method will help build competitive payment solutions to suit the contemporary setup. And with CBDC private ledger, the company has taken the first step to create a difference in the issuance and management of digital currencies of the Central banking system across the globe.