The blockchain-based digital payment company – Ripple – joined the Digital Pound Foundation to assist with the creation of a central bank digital currency.
Incorporating with The Digital Pound Foundation
Launched on October 14th by a group of founding members, the latter is an independent forum aiming to support the implementation of a digital pound and digital money ecosystem in the United Kingdom. Apart from Ripple, other members include Accenture, Avalanche, Billon Group, CGI, Electroneum, and Quant.
The blockchain provider will appoint Susan Friedman – Head of Policy – as its representative. She commented:
“We are excited to support the design and implementation of a digital Pound in partnership with the Digital Pound Foundation. The Foundation will help advance the UK’s goal to build a more inclusive and sustainable financial system.”
In its announcement, Ripple reminded that more than 80% of central banks are exploring some digital projects such as CBDCs, which potentially could enhance the monetary system. As such, the payment network’s solution could be beneficial to the goals of the DPF.
Ripple’s Other CBDC Projects
This is not the first time when the blockchain provider has taken part in such a program. As CryptoPotato reported last month, Bhutan’s central bank – the Royal Monetary Authority (RMA) – teamed up with Ripple to design a digital version of its national currency.
By launching the initiative, the RMA expects to “enhance digital and cross-border payments and expand financial inclusion efforts” by 85% in the next two years.
Ripple asserted that its CBDC solution would be a match for Bhutan’s green policies since the Asian country is known to be the only carbon-negative nation across the globe.
“Ripple’s commitment to sustainability was important for Bhutan. The CBDC solution is carbon-neutral and, because it’s based on the public XRP Ledger, is 120,000x more energy-efficient than proof-of-work blockchains,” the company explained.
Subsequently, Ripple said its network would provide Bhutan’s central bank with more “control over the issuance, management, privacy, and validation than they would get with public blockchains.”