Ripple joins Team working towards the Creation of a UK CBDC

Ripple, a leading blockchain payments network, is collaborating with the Digital Pound Foundation to develop a central bank digital currency (CBDC). The partnership will also include firms such as Accenture, Quant and CGI Group.

News of this recent partnership was given by Susan Friedman, the Head of Policy at Ripple. In a tweet, she stated, “Looking forward to collaborating on this new form of money to support an innovative, inclusive digital economy.”

Ripple and CBDCs

Ripple noted that this recent collaboration with the Digital Pound Foundation was in line with the firm’s objectives of working with global central banks to solve the technical and policy issues concerning CBDCs.

This is not the first engagement of Ripple with CBDCs. Last month, the payments firm announced its partnership with the Royal Monetary Authority of Bhutan. Under this partnership, Ripple’s CBDC private ledger will be the foundation of the Bhutanese digital currency.

Ripple is well-positioned to be a bridge towards CBDC development. With over 80% of central banks globally looking towards CBDCs and ways to boost cryptocurrency adoption, the use of Ripple’s network is expected to continue increasing.

The race towards CBDC Development

CBDCs have been a heated topic in the cryptocurrency sector. Recently, the Bank of England released a discussion paper on CBDCs. The paper tackled some of the major issues that face CBDCs, such as implementation and regulation.

CBDC development has also been supported by the governor of the Bank of England, Andrew Bailey. In his recent remarks, he stated that if CBDCs are ever developed, they will mark one of the greatest innovations in the history of central banks.

The US has also not been left behind in the race towards CBDC research. In September, the US Federal Reserve noted that it would soon issue its own research paper on CBDCs. However, the US is behind other developed economies such as China that have already launched CBDCs.

The Chair of the US Federal Reserve, Jerome Powell, has previously stated that the US would not rush in developing a digital dollar. He noted that the country would rather focus on creating a currency that was stable and trustworthy.

Payment service companies are also showing support for CBDCs. At the beginning of the month, VISA, a payment service company, issued a whitepaper discussing how CBDCs and stablecoins would achieve interoperability.

While some parties in the crypto space are supporting CBDCs, some are opposing these currencies. Some fear that CBDCs will bring the government and central banks into a system meant to remove these bodies from transaction settlements.

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