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Ripple Partners with Central Bank of Bhutan to Launch CBDC Trial


peanut56
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48 minutes ago, peanut56 said:

Is this the first CBDC trial announced? As far as a specific country going into trials. MHO Bhutan seems like pretty chill nation.

These small sovereign nations have INCREDIBLE currency reserves. 

Can you imagine...

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I don't think the first nation's to utilize Ripple for exploration into CBDC would be a large nation with large currency reserves. I'm pretty sure the nations with a large reserve currency (U.S.A) might actually fight against it since it allows for monetary leverage over smaller nations such as Bhutan, Portugal, Spain, basically all nations in Africa, ASEAN nations, and so on. I was more asking if there are specific countries that have been publicly announced.

As far as interoperability being key, I wholly agree with this. Not every nation or business is going to be comfortable with DA's especially now in a pretty much untested territory.

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3 hours ago, peanut56 said:

I don't think the first nation's to utilize Ripple for exploration into CBDC would be a large nation with large currency reserves. I'm pretty sure the nations with a large reserve currency (U.S.A) might actually fight against it since it allows for monetary leverage over smaller nations such as Bhutan, Portugal, Spain, basically all nations in Africa, ASEAN nations, and so on. I was more asking if there are specific countries that have been publicly announced.

As far as interoperability being key, I wholly agree with this. Not every nation or business is going to be comfortable with DA's especially now in a pretty much untested territory.

I agree. In fact, I personally think that this could be Ripple's way of proving out what it can do before India could potentially take it up. India is a huge partner for Bhutan. Pure hopium thinking though.

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Economies of scale : little players move first. 

This news is incredible. We've all seen the James Wallis CBDC video ("In each continent apart from Antarctica") but that CBDC variation turning concrete makes the moon suddenly very much closer.

Since the private ledger is involved (which is no news), are we already talking about XRP or could it be at the moment, a story about some private RippleNet API ? 

 

 

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18 minutes ago, French said:

Economies of scale : little players move first. 

This news is incredible. We've all seen the James Wallis CBDC video ("In each continent apart from Antarctica") but that CBDC variation turning concrete makes the moon suddenly very much closer.

Since the private ledger is involved (which is no news), are we already talking about XRP or could it be at the moment, a story about some private RippleNet API ? 

 

 

No. This is literally XRPL that is run by a group of mutually trusted entities as validators and the UNL. The network addresses are not published outside of this group, so it is “private”. The native asset here is not XRP (but could be). 

You and I could clone XRPL and run our own private network. Nothing stopping us.

The real fun begins once side channels are enabled (in progress, due later this year). Some entities, say large banks, will operate nodes on both the private and the public XRPL network and the side channels will help bridge the two. So imagine JP Morgan, or Bank of America running nodes on Bhutan, India, USA, France private networks, but also the public XRPL. They would be able to bridge the two.

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If this is literally XRPL, why is that pre-agreement between RMA and Ripple, and not with the XRPLF ? What is the value added of Ripple ? (we all know the answer, but legaly speaking). I don't think Ripple has a kind of privilege about issuing private ledgers, do they ? (you seem to agree on that). 

I thought sidechain (A Vision for Federated Sidechains on the XRP Ledger - June 07) was the name for the private ledger we were waiting for (Ripple Pilots a Private Ledger for Central Banks Launching CBDCs - March 03). That's the first time I heard about the co-existence of PL and sidechains ! Seems like I didn't do my homework carefully ..

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5 minutes ago, French said:

If this is literally XRPL, why is that pre-agreement between RMA and Ripple, and not with the XRPLF ? What is the value added of Ripple ? (we all know the answer, but legaly speaking). I don't think Ripple has a kind of privilege about issuing private ledgers, do they ? (you seem to agree on that). 

I thought sidechain (A Vision for Federated Sidechains on the XRP Ledger - June 07) was the name for the private ledger we were waiting for (Ripple Pilots a Private Ledger for Central Banks Launching CBDCs - March 03). That's the first time I heard about the co-existence of PL and sidechains ! Seems like I didn't do my homework carefully ..

No one needs Ripple/XRPLF’s permission to run XRPL. But Ripple is likely providing additional monetary and fiscal policy management tools for those issuing CBDCs. Also remember, when a country’s sovereign currency is running on a blockchain, it better not have a single failure from a liveliness perspective. Zero tolerance. There must be a lot more sophisticated stuff happening in the background.

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2 hours ago, princesultan said:

Nice but also not super exciting for me

1) there’s been enough ripple pilots over the past decade now. None have materialized

2) this is a private ledger. It will be a billion years before xrp is even involved in this

Can you clarify what you mean when you say, "None have materialized." Ripple has over +300 partnerships with FIs, Banks, payment providers, etc. all of whom are using various aspects of RippleNet. Some just the bi-lateral messaging network, some the ODL, and some Line-of-Credit. Ripple is well past the pilot phase for these three features of RippleNet. Because ODL and Line-of-Credit utilizes XRP, their use depends on regulatory clarity in both the initiating and destination countries, proper infrastructure (market makers, arbitrage, etc.), and enough liquidity via the corridor. This is the first publicized announcement of a CBDC test pilot for Ripple's Private XRPL with a Central Bank. Literally, the Private XRP-Ledger CBDC platform was just finalized and released for Central Banks to start piloting. The release is actually a month early as David Schwartz said, in the most recent Ripple Drop back in August, to expect the XRP-Ledger CBDC platform within a couple of months. 

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4 hours ago, French said:

If this is literally XRPL, why is that pre-agreement between RMA and Ripple, and not with the XRPLF ? What is the value added of Ripple ? (we all know the answer, but legaly speaking). I don't think Ripple has a kind of privilege about issuing private ledgers, do they ? (you seem to agree on that). 

The pre-agreement is with Ripple because the RMA will be a Ripple partner. Also, this is a "PRIVATE" version of the XRPL and will be a centralized permission-based platform controlled by the managing central bank. This private central bank ledger has nothing to do with the XRPL or the XRPLF other than it's using the open source technology. The XRPLF governs the XRPL not the proprietary private ledger platform Ripple has created for CBs. If I had to guess, Ripple will house these private CB ledger under a subsidiary network within RippleNet. I also believe they will have a customized built-in private liquidity solution (i.e. CBDC ODL) that uses XRP as the bridge asset between the various CBDC private ledgers. Most likely each CB will have a stockpile of XRP to facilitate the transference of each participating CB's CBDC between one another to allow for quick settlement.

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