Why Ripple joining the Digital Pound bandwagon could be a gamechanger

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Why Ripple joining the Digital Pound bandwagon could be a gamechanger

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 Why Ripple joining the Digital Pound bandwagon could be a gamechanger
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Highlights 

  • Ripple Foundation on 14 October announced that it would be joining forces with the UK’s Digital Pound Foundation.
  • The Ripple team is expected to work with the Digital Pound Foundation on the technical as well as policy-related aspects for the implementation of CBDCs.

The United Kingdom is among the few countries that have been aggressive in exploring the adoption of central bank digital currencies (CBDCs). In fact, very recently, it made it clear with the setting up of the Digital Pound Forum alongside the CBDC Taskforce, which shows the intent that it’s seriously exploring the idea of CBDCs as a viable form of currency in the future. 

Later on, 29 September, it added representatives from Monzo, PayPal and ASOS to the Bank of England (BoE) and Treasury’s CBDC Engagement and Technology forums, which further highlighted the point. With BoE Deputy Governor Sir Jon Cunliffe insisting on the need for regulations in the cryptocurrency market, the CBDC could well be the way England is looking in the future. 

Also read: Bitcoin Hits $60,000 for the first time since April

Ripple joins the Digital Pound Foundation 

Now following the Monzo, PayPal and ASOS, the Ripple Foundation on 14 October announced that it would be joining forces with the UK’s Digital Pound Foundation to implement the CBDCs. 

Represented by Susan Friedman as the foundation member, the Ripple team will work with the Digital Pound Foundation to work on the technical as well as policy related issues within the implementation of CBDCs. Ripple views the UK with its encouraging innovation and growth in the asset space, the Digital Pound Foundation will enhance the country’s goal to build a more inclusive and sustainable financial system. It believes that the government could further establish itself as a global leader in the emerging global digital landscapes of the CBDC space.

Also read: The Best Cryptocurrencies of 2021

Ripple’s pilot model

Ripple joining hands with Digital Pound Foundation could well be a game-changer. Ripple Foundation has partnered with Bhutan’s Central Bank, the Royal Monetary Authority (RMA), to pilot a similar model. In Bhutan’s case, Ripple is helping to find solutions into the retail, cross-border and wholesale payment use cases for a Digital Ngultrum using its CBDC solution. The partnership is expected to enhance digital payments and expand the financial inclusion efforts. 

Also read: Bitcoin rally sees crypto market overtake Apple, Amazon

With UK chancellor Rishi Sunak announcing that they are still in the trial phase of the CBDCs in the country, this could well be the shot in the arm that the government requires. Even though China is way ahead of its competitors, BoE, along with the Digital Pound Foundation, could chart new ways to implement the Digital pound much sooner than anticipated.  

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