Ripple’s proposed solution for CBDCs has been embraced by the G20 TechSprint CBDC challenge committee, constituting the Bank for International Settlements (BIS), Bank Indonesia, and several central bank connoisseurs. Ripple Labs and 20 other shortlisted fintechs now have until the end of August to complete their prototyped CBDC solutions.
2022 G20 TechSprint CBDC Challenge
Over the years, there has been an increased interest in Central Bank Digital Currencies (CBDCs) by several central banks around the globe. The G20 countries have not been left out in this pursuit and actualization of CBDCs.
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Hence, the ongoing G20 TechSprint Challenge on Central Bank Digital Currencies (CBDCs), spearheaded by the Bank for International Settlements (BIS) Innovation Hub and Bank Indonesia, under the Indonesian G20 Presidency.
In preparation for the fast-approaching G20 summit and as part of the Indonesia Digital Economy and Finance Festival, ahead of the meeting of G20 Finance Ministers and Central Bank Governors, this 2022 challenge was staged. It is geared towards the rollout of effective, efficient, and sustainable Central Bank Digital Currencies (CBDCs) in G20 nations.
The 2022 G20 TechSprint CBDC challenge commenced in April and is scheduled to be concluded in October. Around 100 large global corporations and specialized fintechs joined the competition.
Accordingly, the lead organizers BIS Innovation Hub and Bank Indonesia issued three problem statements on Central Bank Digital Currency (CBDC) and prompted a wide range of experts (participants) to develop innovative technological solutions to any of the given operational challenges.
Notably, participants included innovators, entrepreneurs, developers, data scientists, and telecommunications experts from over 15 countries and jurisdictions. Among these participating firms include Ripple (XRP), Mastercard Asia Pacific Pte Ltd., and S.e.A. (Stellar, eCurrency, and ANZ).
According to the 2022 G20 TechSprint CBDC challenge report, the three problem statements are: (1) Building effective and robust means to issue, distribute and transfer CBDCs, (2) Solutions to enable financial inclusion, and (3) Improving connectivity and interoperability.
Ripple Among the Finalists
Interestingly, Ripple is the only top crypto project to reach the final stages of the 2022 G20 TechSprint CBDC challenge. Currently, there are only 21 finalists as the other participants have been eliminated.
We're excited to be shortlisted in the @BIS_org and @bank_indonesia G20 challenge for our CBDC solution! 90% of central banks are exploring CBDCs – and we know their potential to advance financial inclusion, and the hurdles to adopting them. https://t.co/aPvlBI23ea
— Ripple (@Ripple) July 13, 2022
On July 12, BIS Innovation Hub and Bank Indonesia announced the finalists of the G20 TechSprint CBDC challenge. Ripple’s proposed solution in line with the building of effective and robust means to issue, distribute and transfer CBDCs got adopted by the committee.
Per the announcement, the shortlisted teams demonstrated their solutions to Bank Indonesia, the Bank of International Settlements (BIS), and several central banks experts. “They also participated in a CBDC Masterclass to glean practical insights into some of the CBDC experiments underway at the BIS Innovation Hub,” it added.
Consequently, the shortlisted participants have been given up until late August to complete their prototypes. Thereafter, these models will be ruled on by an independent expert panel convened by Bank Indonesia. Lastly, winners for each of the three problem statement categories will be announced in October ahead of the G20 Summit, as revealed in the report.
In response, Ross Leckow, Acting Head of the BIS Innovation Hub noted;
“CBDCs have been attracting strong interest from central banks around the world. The proposals from the finalists offer unique and innovative technology solutions that could allow CBDCs to be widely adopted. This highlights the G20 TechSprint’s role in bringing together innovators and the central banking and regulatory community. We look forward to seeing the fully developed solutions.”