Ripple’s James Wallis Reveals Hong Kong-Backed CBDC Initiative to Integrate Tokenized Real Estate and Web3 Lending
Ripple, the sixth-largest cryptocurrency XRP issuer, said it aims to merge central bank digital currencies with DeFi primitives.
James Wallis, Vice President of Central Bank Engagements and CBDC at Ripple, said: interview Pimut said his company is working on a project backed by the Hong Kong Monetary Authority to explore a CBDC-powered lending protocol that supports tokenized real estate as collateral.
“You can see different elements of Web3 coming together,” said Wallis. “You will be able to tokenize your assets and actually make loans against them using DeFi lending protocols.”
Central bank digital currency (CBDC) refers to digital currency issued by a central bank via a distributed ledger. Proponents of decentralization have criticized CBDCs for benefiting governments through significant efficiency cuts and vast financial oversight capabilities, while offering none of the benefits associated with distributed ledger technology. (DLT) to the public.
CBDC issuers retain full control over their issued currency, including minting, distribution, redemption and destruction of tokens.
CBDC and DeFi
But Wallis paints a different story for the future of CBDCs, arguing that central bank money will be integrated with popular use cases in DeFi and Web3.
“The Internet of Value will have central bank money as part of it, and we want to be a catalyst for it,” Wallis said. [and] How You Can Leverage Some of the DeFi Aspects [crypto]the company’s CBDC Innovate Hackathon starting May 15.
Ripple’s CBDC Platform
Wallis’ remarks coincided with the public launch of Ripple’s CBDC platform.
Ripple described the platform as a full-stack solution that enables central banks, governments and financial institutions to issue digital currencies. The platform utilizes the same blockchain technology that powers the XRP Ledger to manage accounts and settle transactions.
Wallis said the platform will focus on enabling three core CBDC use cases: settling cross-border transactions, facilitating domestic payments, and interbank payments (also known as “wholesale CBDC”). said to have placed
Ripple is already working on several government and CBDC initiatives.
The Republic of Palau, a Micronesian archipelago with a population of less than 20,000, has already registered to use the platform. Palauan President Slangel Whips Jr. said the CBDC would provide “greater financial access” for Palauans.
Ripple is also working with Montenegro to issue a national currency pegged to the euro issued by the central bank.
Montenegro has now applied for EU membership and has since officially used the euro as its de facto currency. 2002.
Wallis said most governments are looking to CBDCs for efficiency gains, especially in the context of cross-border payments.
“Without exception, in every project we are involved in, remittances, trade flows, [or] There are many reasons,” he said.
Wallis estimates that more than 90% of countries around the world are currently working on CBDC research or development.
