Blockchain-based company Ripple has officially partnered with an independent forum Digital Pound Foundation (DPF) to facilitate and explore the development of British CBDC. Apart from Ripple, Avalanch is also involved in the coordination of the DPF on the project.
Digital Pound Foundation, a non-profit organization, focuses on the creation and implementation of a well-designed digital pound for Britain. DPF was launched in June 2021. It proposed a model where the public and private sector could collaborate to make UK transition to a digital economy.
The Foundation will conduct research and exploratory studies to roll out British CBDC. DPF says CBDCs and other digital monies can help technology improve to develop inclusive payment services such as programmable money, and strengthen the payments infrastructure of Britain.
Ripple which announced its partnership on October 14 expressed excitement about the project. Susan Friedman, Ripple’s Head of Policy, stated that the partnership was part of Ripple’s ongoing engagement with central banks worldwide on technical and policy issues related to the development of CBDCs.
Friedman stated that the UK will be able to achieve its goal of building a more inclusive financial system by collaborating with Ripple. Ripple stated that the UK has long advocated responsible innovation and growth within the crypto-asset sector. The UK will transition to a digital CBDC and become a global digital platform, thanks to its innovative digital economy.
The Bank of England is also working to integrate evolving digital payments systems. Bank of England and UK Treasury announced that PayPal, Visa, and Morgan Stanley were among the corporate representatives in two advisory groups, Technology Forum and Engagement Forum. These groups were created to coordinate exploratory work regarding potential CBDC.
Ripple also works in partnership with Bhutan’s central bank, Royal Monetary Authority (RMA) to pilot cross-border payments as well as wholesale payments using CBDC solutions.