The CBDC platform will be powered by the same blockchain technology as Ripple's public XRP Ledger.
Ripple is piloting a private ledger to provide a platform for the issuance of central bank digital currencies (CBDCs).
The CBDC Private Ledger will be powered by the same blockchain technology as Ripple's public XRP Ledger (XRPL).
This means the ledger will be built both for payments and issuing digital currencies, according to a blog post Wednesday.
The CBDC ledger will aim to move money at low cost and with the speed and volume demanded by central banks, while also meeting their standards of security.
Ripple will also need to ensure CBDC products built with XRPL will be interoperable with existing financial infrastructure.
“The core technology behind this new CBDC Private Ledger has been running for more than 8 years without incident and with billions of dollars of value transacted everyday,” according to Ripple's post.
Around 80% of central banks are looking at launching a CBDC, per the post, with the Bahamas' Sand Dollar being the first to launch and China's digital yuan thought to be nearing fruition.