Ripple Piloting Variant of XRP Ledger to Power Central Bank Digital Currencies
Ripple is trialing a private variant of the XRP Ledger that will act as a core of central bank digital currencies. The venture, named as the Central Bank Digital Currency (CBDC) Private Ledger, will also use the blockchain technology as the core of the XRP Ledger, paving way for processing tens of thousands of transactions per second (TPS), along with “the potential to scale to hundreds of thousands TPSs over time,” as per the latest media release from Ripple.
The San Francisco-headquartered payment processing firm has pointed out that 80% of central banks are scrutinizing the capability of sovereign pegged cryptos.
The CBDC Private Ledger provides banks with the requisite transaction privacy, interoperability and safety with the traditional financial solution to additionally study the option, as per Ripple.
David Schwartz, CTO of Ripple, a foremost initiator of the XRP Ledger, states that the latest CBDC Private Ledger provides central banks with additional safety, privacy and expertise in their dealings.
The XRPL has been running smoothly for 8+ years w/ billions of $ at stake. The CBDC Private Ledger ensures transaction privacy and security controls combined w/ the reliability and payments proficiency of the XRPL – the best of both worlds. https://t.co/4zOk6w47NE
— 𝘋𝘢𝘷𝘪𝘥 “𝘑𝘰𝘦𝘭𝘒𝘢𝘵𝘻” 𝘚𝘤𝘩𝘸𝘢𝘳𝘵𝘻 (@JoelKatz) March 3, 2021
Ripple also points out that XRP Ledger utilizes less power, is cost effective and is “61,000 times more efficient than public blockchains that leverage proof-of-work.”
The CBDC Private Ledger will utilize an identical consensus covenant as XRPL to validate dealings.