Ripple, one of the world’s leading Blockchain firms, recently announced a collaboration with the Royal Monetary Authority (RMA), the central bank of Bhutan. According to the partnership, the central bank will use Ripple’s CBDC solution to enhance financial inclusion and sustainability. Following the recent announcement, the price of XRP jumped significantly.
Bhutan is planning to expand its digital and cross-border Payments infrastructure through Ripple’s innovative technology. The country will use Ripple’s solution to pilot a central bank digital currency in different phases. The CBDC solution of Ripple leverages a private version of the public, open-source XRP Ledger (XRPL).
Since the start of 2021, the adoption of XRP Ledger has increased substantially. The company’s CBDC solution is energy efficient. Ripple also highlighted that its central bank digital currency solution is extremely cost-effective and reliable.
“The RMA believes that easier, faster and more affordable payments, both domestically and internationally, will help it reach its goal of increasing financial inclusion by 85% by 2023. The power of the technology underlying the XRP Ledger, combined with Ripple’s experience in cross-border payments and tokenization, will harness the tremendous speed, cost and innovation advantages in support of this mission,” Ripple mentioned in the latest announcement.
In May 2021, Dubai’s Lulu Exchange and the National Bank of Egypt partnered through RippleNet for the smooth execution of cross-border payments from the United Arab Emirates (UAE) to Egypt.
Ripple’s Announcement and XRP
As a result of the recent announcement from Ripple, the price of XRP jumped by more than 10% in the last 24 hours. XRP is now trading above $1 with a market cap of over $47 billion. XRP is the world’s 6th largest cryptocurrency. Last week, the overall market cap of XRP jumped above the total value of Solana (SOL).
Historically, Ripple’s partnership announcements had a positive impact on the price of XRP. In August 2021, the cryptocurrency crossed the market cap of $40 billion after GME’s RippleNet announcement.
