The Royal Monetary Authority (RMA), Bhutan’s central bank, is partnering with Ripple to launch its central bank digital currency (CBDC). The RMA intends to improve its financial inclusion among citizens and boost cashless payments using Ripple’s CBDC Private Ledger. The aforementioned Private Ledger will pilot the retail, cross-border, and wholesale payment use cases of the CBDC. This will grant the RMA access to a network of CBDC ledgers for full settlement interoperability.
The exchange’s blockchain technology will also help pilot the digital version of the South Asian country’s currency, Ngultrum. The RMA plans to use this to increase financial inclusion to 85% by 2023. According to the RMA Deputy Governor Yangchen Tshogyel, digital currency could begin a sustainable payment option in the country. Tshogyel’s stated:
“Our collaboration with Ripple is testament to the potential of CBDCs to provide an alternative and sustainable digital payment instrument in Bhutan.”
James Wallis, a VP at Ripple, also weighed in on the partnership with the RMA. In his words:
“We couldn’t be more thrilled to partner with the RMA on its CBDC agenda and foster our shared values in creating a more sustainable, accessible, and financially inclusive reality.”
The RMA launched the Global Interchange for Financial Transactions (GIFT) program back in 2019 to facilitate bulk electronic transfers. In addition, the central bank also aids its government’s public Electronic Public Expenditure Management System (e-PEMS). RMA provides support for e-PEMS in running smoother transactions between the government and banking systems.
Image Credits: Pixabay
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