CBDC Innovate Challenge, a new hackathon for developers who can create XRP Ledger-powered payment systems based on Central Bank Digital Currency technology, was launched by Ripple Labs Inc, a digital currency payments company.
Entries must focus on use cases, and interoperability related to CBDCs, stated the company, known for its cross-border payment solutions, with a top prize of around $150,000 at risk.
According to a BIS research, around 9 out of 10 Central Banks across the world are now investigating these new forms of money, thus proving that CBDCs are not a new phenomenon. Getting CBDCs to cooperate with one another will be a key prerequisite for international trade and transactions because it is predicted to be a lot of them in the next few years.
Providing insight into innovative ideas that might improve the operation of these new forms of money is the aim of the Ripple CBDC Innovate Challenge. Developers who want to participate must focus on interoperability solutions, retail-facing technologies, and financial inclusion ideas, the company announced.
Systems that allow CBDCs to communicate with one another, as well as a viable wallet that can carry several CBDCs, will need to be focused on more by the participants when it comes to interoperability.
Suitable focus on retail consumers while also promoting creative ideas that can promote appropriate financial inclusion, such as P2P lending and others, should have to be included in the solutions that will be built.
Various countries, including Palau and Bhutan, have approached Ripple Labs to assist in the development of long-term CBDC solutions. Ripple will benefit from the broad-based insights given through the entries, regardless of including the winning solutions from this competition.
From September 8 through October 31, the submission period runs. The pitch demo judging will take place from November 1 to November 4, with the winners being announced from November 16 to 18.