Ripple Will Participate In The Hong Kong Digital Dollar Program
Ripple will showcase how Ripple’s technology can be used to issue real assets tokens.
Ripple is a San Francisco headquartered blockchain firm, which is popularly known for XRP coin. Ripple provides cross-border payment services with the help of XRP coin and Ripple Labs is the engineering behind XRP coin. At the present time, Ripple is in a legal dispute with the United States Securities and Exchange Commission (SEC) over the nature of the XRP coin.
Recently the Hong Kong Monetary Authority (HKMA) confirmed that Ripple will also be one of the participants in its digital Hong Kong dollar (e-HKD) central bank digital currency (CBDC) pilot program.
Ripple will demonstrate how blockchain technology & its resources can be used to release tokenized assets using eHKD.
According to Ripple, tokenization can solve the complications associated with the equity release & help to boost the release process.
To showcase the use case of Ripple’s infrastructure to support the e-HKD with new use cases, Ripple partners with Taiwan’s Fubon Bank and others.
The whole pilot project will run on Ripple’s new CBDC platform “Ripple CBDC Platform”, a new blockchain network with more scalability & enhanced functionalities.
Initially, Hong Kong started to work on CBDC in 2017. eHKD White Paper noted that Hong Kong monetary authority doesn’t think that CBDC may play any better influence or role at the retail level.
CBDCs & challenges
Over the past couple of years, the CBDC development race surged rapidly, to bring modernization in the traditional financial system. A recent report noted that every central bank designs CBDC models in different ways, to prohibit the risks associated with the CBDC payment system.
On one side, hundreds of central banks are working on the CBDC development, on the other hand, there are a number of central banks which are taking steps back from CBDC adoption because of the technical challenges & potential hidden risks.
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