Ripple Joins Digital Pound Foundation To Help Develop UK CBDC

Ripple, the enterprise blockchain firm behind XRP Ledger and its native digital asset XRP, as well as the open-source PayString protocol, has announced that it is joining the Digital Pound Foundation, a non-profit organization that’s helping develop and strategize the implementation of a digital Pound for the United Kingdom.

Ripple’s participation in the initiative to create a digital Pound will help boost the Foundation’s efforts to connect with central banks on a global scale, advising on technical and policy issues related to central bank digital currencies (CBDCs). Ripple’s role will be represented on the Digital Pound Foundation’s board by Susan Friedman, its Head of Policy.

“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.” Friedman notes.

According to Ripple, it recognizes the UK’s leadership in terms of “encouraging responsible innovation and growth” in the crypto-asset space. Ripple says that the development of a digital Pound was the “logical outgrowth” of these efforts.

In a press release issued today, the Foundation said that it believes that the development of a digital Pound will “underpin the UK’s transition to an innovative digital economy and society.” A recent statement from the Bank of England’s Deputy Governor for Financial Stability, Sir Jon Cunliffe, acknowledges the role of CBDCs in helping reduce the impact of risks stemming from the crypto industry.

“The implementation of a CBDC, alongside other forms of digital money,  will ensure the UK’s place in the emerging global digital landscape.” the Foundation adds.

Sir Cunliffe also identified while crypto technologies pose a risk of financial instability, regulatory frameworks may help counter these risks from the sector. The Bank of England is the UK government’s officially appointed body towards the development project for a UK CBDC.

“As more and more central banks implement CBDCs, interoperability, privacy and complete sovereignty will be key to enable central banks to move money cost-effectively, reliably and instantly.” Ripple says.

Earlier in September, Ripple announced its partnership with Bhutan’s central bank, the Royal Monetary Authority (RMA). The partnership sees Ripple developing a pilot program for retail, cross-border, and wholesale payment solutions for a digital Ngultrum with the use of both its open-source and proprietary blockchain technologies.

Notably, Bhutan is the only carbon-negative country in the world, which synergizes well with Ripple’s recent partnership with Nelnet to reduce the carbon footprint of the crypto industry and develop standards and frameworks to achieve this elsewhere.

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Publication date: 
10/14/2021 - 16:45
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