Ripple Launches $197,000 Hackathon for CBDC Interoperability and Financial Inclusion

San Francisco-based enterprise blockchain provider Ripple has launched a central bank digital currency hackathon with a total prize pool of $197,000 to promote the development of solutions for retail CBDCs, financial inclusion, and interoperability.

Ripple Launches CBDC Contest

The event, dubbed CBDC Innovate, will allow developers to build applications that run on Ripple’s decentralized, open-source blockchain, the XRP Ledger (XRPL).

Contestants are required to build or update a fintech or payment solution in one out of three categories. The first category focuses on interoperability, and developers are expected to submit a solution that allows CBDC to interoperate with other digital assets such as non-fungible tokens and stablecoins.

The second category focuses on retail-facing, and contestants are expected to build an interface that allows users to interact with a CBDC. The last category covers financial inclusion, and developers are to submit a solution that can leverage the advantages of such a digital currency.

According to the hackathon page, competitors must submit their solutions on or before August 25, 2022, and winners will be announced on September 8. The competition is open to developers in all regions except Brazil, Crimea, Cuba, Iran, North Korea, Quebec, Russia, and Syria.

Ripple Continues to Invest in CBDC Innovation

Ripple has continued to invest heavily in CBDC solutions as more countries consider launching such products. The company has a dedicated platform based on the XRP Ledger technology that allows central banks to mint, manage, transact, and destroy CBDCs.

Ripple has worked with several countries and banks to experiment with CBDC solutions. In September 2021, it partnered with Bhutan to pilot the country’s CBDC. The collaboration allowed Bhutan to run its digital currency on Ripple’s CBDC platform for retail, cross-border, and wholesale payments.

In November, the company partnered with the Republic of Palau to explore and develop strategies for the country’s first digital currency.

Earlier this year, Ripple collaborated with the Digital Euro Association (DEA) to exchange information and technical expertise about CBDCs.

Ripple Plans to Exit the U.S. if the SEC Wins

Meanwhile, the San Francisco-based blockchain company plans to exit the United States if it loses its ongoing legal battle with the Securities and Exchange Commission (SEC). As previously reported, the regulator alleged that Ripple raised $1.3 billion by issuing unregistered securities through the sales of XRP.

While it is still unclear when the case will end, Ripple CEO Brad Garlinghouse believes the issue could be resolved before the end of the year.

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