The Royal Bhutan Monetary Authority (RMA) has partnered with fintech company Ripple to pilot test the central bank's digital currency (CBDC).
Ripple believes XRP Ledger distributed ledger technology and the firm's CBDC solution based on it can enable fast and low-cost retail, wholesale, as well as cross-border payments.
The firm believes that the use of XRP Ledger provides central banks with greater control over CBDC issuance, management and privacy compared to public blockchains.
Recall that in early 2021, Ripple said it was discussing using XRP Ledger as the basis for CBDC "with various central banks around the world".
In March, the company announced it was testing a private version of its distributed ledger for this purpose.