Ripple has announced that it is looking to set up a private general office for national digital currencies. High operational capacity and interoperability will be the main features of this special general office.
to the the report Ripple, a company that focuses on Blockchain payments, announced yesterday that it is testing a private general office designed specifically for national digital currencies.
A recent study by the Bank for International Settlements (BIS) shows that more than 80 percent of the world’s central banks are considering the possibility of offering a national digital currency. Ripple, for its part, intends to enter the sector by offering a “secure, controlled and flexible solution” for issuing and managing national digital currency.
The company noted that although central banks can use some of the existing blockchains for their national digital currency projects, many blockchains are unable to provide the operational capacity for the volume of transactions required for a successful national digital currency. .
In addition, most blockchains are distributed general office accessible to all users and are updated by a wide range of authenticators; However, according to Ripple, this feature is not ideal for national digital currencies.
Ripple said in an explanation:
The privacy of transactions and currency controls required by the central bank is greater than what public offices can provide. Therefore, most likely, their choice will be to create a national digital currency on a private general office that also has the capacity to operate on the required scale.
For this reason, Ripple plans to release a copy of its private general ledger with a focus on national digital currencies and for state-owned banks. This head office not only provides high speed and scalability, but can also interact with existing global financial structures and other digital assets.
Ripple National Digital Currencies will be based on the same blockchain technology that XRP is based on and is primarily designed for payments.
Transferring money to the National General Office of National Digital Currencies is cost-effective, secure and almost instantaneous; It will also be possible to carry out transactions in the volume required by central banks. The General Directorate of National Digital Currencies will initially be able to manage tens of thousands of transactions per second, and gradually the capacity will increase to hundreds of thousands of transactions per second.
As previously reported, the State Bank of New York recently conducted a study showing that national digital currencies have a higher capacity for privacy than their private counterparts.
Meanwhile, several national digital currency pilot projects are being implemented at full capacity in countries such as Canada, South Korea, Brazil, Japan, Thailand and many more.