Ripple is testing a closed version of the blockchain that will provide central banks with a secure, controlled and flexible solution for issuing and managing government cryptocurrencies.
According to an article on Ripple’s blog, the company is testing a new proprietary version of the XRP Ledger, which is specifically designed to issue government cryptocurrencies. According to the company, this is a “revolutionary solution” based on the same technology as the original blockchain.
CBDC Private Ledger is designed for issuing currencies, where XRP can be used as a neutral bridge asset for the smooth movement of value between government cryptocurrencies and other currencies. Ripple claims the blockchain could potentially process up to “hundreds of thousands” of transactions per second.
“We believe this solution will help address the major challenges of creating and managing a government-owned cryptocurrency, and will add value and benefits for central banks, their partners, and most of all, the millions of people who will use it.”
Ripple is already working with central banks to figure out how the new project can be used in their plans to release government-owned cryptocurrencies, according to the company.
More central banks are exploring the possibilities of issuing government cryptocurrencies, and private companies are seeking to offer solutions to support these initiatives. Recently, the Hong Kong Monetary Authority and the Bank of Thailand announced that the central banks of China and the UAE are joining a project aimed at using blockchain for international payments.
Last month, the CEO of PayPal said the company could go into the future with distributing government-issued cryptocurrencies issued by central banks to citizens.
