Ripple Launches Innovation Challenge for CBDC Solutions on XRP Ledger

Ripple is launching an innovation challenge aimed at promoting the development of XRP Ledger (XRPL) applications for central bank digital currencies (CBDCs).

According to the contest page, entrants can submit projects for three categories: interoperability, retail orientation, and financial inclusion.

Under the contest rules, interoperability projects must include solutions that help CBDCs connect with other digital assets, including non-fungible tokens (NFTs) and stablecoins.

“Digital assets are increasing in importance as the world moves ever closer to Web 3.0. However, interoperability remains a challenge that could affect CBDCs.”

Entrants submitting retail-oriented projects must aim to develop interfaces for humans to interact with CBDCs in a “modern and elegant way.”

“Access to financial institutions for people with and without bank accounts has been a sore spot for many in developing countries.

Can a CBDC be used in an offline environment? How easy will it be to use a CBDC for users? How can a CBDC be integrated into different existing financial systems?”

Financial inclusion projects should aim to bring banking services to underserved populations and “enable the purchasing power of traditionally underserved communities.”

The competition includes a price tag of $47,000 and winners receive invitations to the “Ripple Winners Exclusive Event” which has $150,000 in prizes. The submission deadline is August 25.