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Earlier this year, the Bank of England was the first among others to have released a detailed document on CBDCs.
In its official press release, global payment solution giant Ripple has confirmed its plans to take part in the development of a digital pound for the UK. Ripple’s head of policy Susan Friedman will be the one spearheading this project and will represent the organization as a foundational member.
Furthermore, Ripple also declared that its collaboration with the foundation will continue its ongoing work to engage central banks and offer effective advice on technical and policy issues related to the CBDCs.
Ripple Joins the CBDC Bandwagon to Assist UK in Establishing a Sustainable Financial System
The press release further highlighted that the United Kingdom has always been a nation that has encouraged others to undertake responsible innovation and growth in the sector of cryptocurrency. Additionally, the development of a digital pound is one such logical approach that will ensure the establishment of durable financial infrastructure and policies in the country.
Ripple also declared that this approach of developing and working towards implementing a digital pound will ensure the UK’s successful transformation into a more comprehensive digital economy. Furthermore, it will also help the nation carve its independent niche as one of the emerging global digital landscapes.
As per multiple reports, approximately 80% of global central banks have been actively exploring new opportunities to adopt cryptocurrency and CBDCs. Earlier this year, the Bank of England was the first among others to have released a detailed document highlighting the important pointers based on CBDCs. After the release of the document, the BoE’s governor Andrew Bailey had asserted that CBDCs possess the required potential and are capable of “ushering a new era” in the world of digital finance.
It is to be noted that Ripple had earlier announced its association with the Royal Monetary Fund of Bhutan. Bhutan is also pursuing the digital currency mechanism and will utilize Ripple’s CBDC private ledger as the foundation to transition towards a digitized economy. Along with that, the US Federal Reserve had also indicated in September that it’s working on an intricate document based on CBDC which will be introduced sometime “soon.”
The introduction of CBDCs as the new digital mechanism has been met with mixed critical reviews. While many financial analysts believe that it is capable of complementing the emerging crypto space, others have expressed deep qualms stating that they might threaten the daily wage workers and have adverse effects on the bank savings.