Bank of England (BoE) mentioned Ripple in its digital pound consultation paper published on February 7.
Ripple, the leading blockchain enterprise and cross-border payment services provider continues to gain recognition globally. This stems from the uniqueness of Ripple’s products and services including On-Demand Liquidity (ODL), RippleNet, and CBDC solutions.
Following its notable solutions and contributions regarding the development of Central Bank Digital Currencies (CBDCs) for different countries of the world, Ripple was cited in a recent consultation paper on the planned digital pound — United Kingdom’s digital currency.
The digital pound is a proposed new form of money for households and businesses in the UK. Hence, the consultation paper, which opens the conversation and seeks to begin to build that foundation of public trust was presented to Parliament by the Economic Secretary to the Treasury by the Command of His Majesty in February 2023.
The Consultation Paper — jointly issued by HM and the Bank of England — has four key sections. Part A talks about the proposal for the digital pound, and Part B focuses on the likely need for a digital pound. While Part C discusses monetary and financial stability, the Bank of England shared its model for the digital pound in Part D.
Read Also: Ripple Releases 2023 Bullish Predictions for Crypto Industry
Bank of England in Collaboration with Ripple
Ripple, the San Francisco-headquartered crypto solutions company, popped up in the retail and wholesale CBDC section of the digital pound Consultation Paper.
It bears noting that the Bank of England and HM Treasury are consulting on a proposal for a retail CBDC that would allow central bank money to be used in electronic form for everyday payments by households and businesses in the United Kingdom.
Accordingly, the Bank of England is presently collaborating with Ripple on a joint project dubbed Cross-border Synchronization to enable innovations in the private sector.
The cross-border synchronization project strives to establish that synchronized FX transactions in two different simulated Real-Time Gross Settlement (RTGS) systems can be achieved. The success of this joint project would lead to the incorporation of synchronization functionality into the roadmap for renewal, the consultation paper stated.
Ripple Adoption Grows Amid SEC Setback
Notably, the Bank of England and HM Treasury choose to work with Ripple to achieve this planned development despite the ongoing SEC attack on Ripple regarding XRP, which began in December 2022.
The United States financial regulator alleges that the XRP Ledger native token is an unregistered security, adding that Ripple violated securities law when it sold XRP. However, the conclusion of the two-year-long Ripple-SEC case is said to be around the corner, according to Ripple CEO Brad Garlinghouse.
Likewise, the Gary Gensler-led SEC charged Kraken for failing to register its sale and offering of a staking-as-a-service (SaaS) on Thursday. Unlike Ripple, Kraken settled the case by paying a penalty of $30 million, while also halting its staking program.
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