Ripple Labs Inc, a digital currency payments startup, has announced the CBDC Innovate Challenge, a new hackathon for developers who can create XRP Ledger-powered payment systems based on Central Bank Digital Currency technology.
With a top prize of approximately $150,000 at risk, the company, known for its cross-border payment solutions, stated that entries must focus on use cases and interoperability related to CBDCs.
CBDCs are not a new phenomenon; according to a BIS study, around 9 out of 10 Central Banks around the world are now investigating these new forms of money. There will be so many CBDCs around in the next few years that getting them to cooperate with one another will be a major prerequisite for international trade and transactions.
The Ripple CBDC Innovate Challenge aims to provide insight into innovative solutions that could improve the operation of these new forms of money. According to the firm, developers who want to participate must focus on interoperability solutions, retail-facing technologies, and financial inclusion ideas.
In terms of interoperability, participants will need to focus on systems that allow CBDCs to communicate with one another, as well as a viable wallet that can carry several CBDCs. The solutions that will be built should have a proper focus on retail consumers while also promoting creative ideas that can promote proper financial inclusion such as P2P lending and others.
Ripple Labs, a significant player in the blockchain payments arena, has been approached by various governments, including Palau and Bhutan, to assist in the development of long-term CBDC solutions. Whether or whether it intends to include the winning solutions from this competition, Ripple will benefit from the broad-based insights given through the entries.
The submission period runs from September 8 to October 31. The pitch demo judging will take place from November 1 to November 4, with the winners being announced from November 16 to 18.
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