Ripple to Help Bhutan Test its National Digital Currency
Main page News, XRP

Fintech company Ripple has teamed up with Bhutan's central bank to help it test the national digital currency, has reported.

The Royal Monetary Authority of Bhutan will use a proprietary version of Ripple's distributed ledger created specifically for central bank digital currencies (CBDCs). It will test retail, cross-border and large payments using the digital version of Bhutan's ngultrum.

Bhutan intends to provide access to financial services to 85% of the population by 2023. In 2019, this share stood at 67.6%.

Ripple's private ledger uses a modified version of XRP's public ledger and, according to a press release, is 120,000 times more efficient than blockchains based on the proof-of-work consensus algorithm. The company cites zero carbon footprint, flexibility and control as its key benefits without compromising financial stability and monetary targets. The Royal Monetary Board has said:

"Our partnership with Ripple is a testament to the ability of CBDCs to provide an alternative and sustainable tool for digital payments in Bhutan."

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