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Ripple Using XRP Ledger Code To Create Private Blockchains for CBDCs

source-logo  thecryptobasic.com  + 1 more 06 March 2023 07:33, UTC

According to Matt Hamilton, these private versions of the XRP Ledger are still in development and are not live yet.

According to a recent tweet, Ripple is currently working on deploying private blockchains of the XRP Ledger (XRPL) code to be used by central banks in developing Central Bank Digital Currencies (CBDCs) and other similar use cases from Matt Hamilton, a former Principal Developer Advocate at Ripple Labs.

Yes, Ripple is working on deploying private versions of the XRP Ledger code for CBDCs and the likes. As far as I know, they are not live yet (the federation code is still being worked on). But again, regardless, the only place XRP actually exists is on the XRP Ledger.

— Matt Hamilton (@HammerToe) March 4, 2023

Hamilton emphasized that these versions of the XRP Ledger are not yet live, as the federation code is still in the works. The federation code is a component of the XRPL software that enables cross-border payments by routing payments between different payment networks using federation addresses. It essentially acts as a bridge between the XRP Ledger and external networks.

The recent disclosure is in sync with an official announcement from Ripple in March 2021. The Silicon Valley firm revealed that it was piloting a private version of the XRP Ledger, which central banks can leverage in issuing and managing CBDCs. Monica Long, President of Ripple, also highlighted the development in March 2021, noting that CBDCs will “live” on these new private ledgers.

Tokenization has always been a key feature of the XRPL with over 5400+ issued tokens since inception. CBDCs will live on new private ledgers that run parallel to XRPL, using XRP as a bridge to interoperate w/ other currencies. No more walled gardens! https://t.co/cQgI0qehFW

— Monica Long (@MonicaLongSF) March 3, 2021

At the time, Hamilton further shed light on the structure of the private ledgers, explaining that every financial institution would operate its distinct private ledger. However, all of these private ledgers would be interconnected with the public XRP Ledger, which would function as a bridge linking them together.

Hamilton’s latest statement aimed to refute ongoing rumors suggesting the existence of a distinct XRP token on private versions of XRPL that have already been deployed. These rumors have alleged that the different XRP tokens hold diverse values and are being utilized by banks and other financial institutions on the ODL platform.

The former Ripple Director stressed that this is false, and the only place XRP exists is on the public XRP Ledger. Some individuals pointed out that Ripple’s CEO, Brad Garlinghouse, mentioned a private ledger for institutional clients during a speech at the World Economic Forum in 2019. However, Hamilton clarified that Garlinghouse was referring to RippleNet, and that these private ledgers have not yet been implemented.


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