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The blockchain payments company, Ripple Labs Inc has announced the launch of its hackathon dubbed Ripple CBDC Innovate challenge as it seeks to power innovation bordering on Central Bank Digital Currencies.
The hackathon which is open to a defined list of eligible participants including individuals, groups of individuals, and corporations will grant access to a winners-only event with a $150,000 prize pool.
Being a prominent blockchain payments firm best known for facilitating cross-border transactions, Ripple Labs is positioning its technologies through the XRP Ledger to prepare for a future that will be dominated by these digital fiat monies.
Defined Categories for Participation
Per the call for participation in the hackathon, Ripple said submissions can be made in three distinct categories bordering Interoperability, Retail Facing, and Financial inclusion.
With respect to interoperability, Ripple Labs wants developers to focus on solutions that can enable CBDCs to work functionally and bridge with other digital assets including but not limited to CBDCs from other countries, Non-Fungible Tokens (NFTs), and stablecoins. The focus on interoperability should answer key questions on how well a particular CBDC can be used for cross-border payments as well as if different CBDCs can be held in the same wallet.
Per retail facing, Ripple Labs demands submissions to explore creativity in designing easy-to-use systems by which CBDCs can be used by those financially underserved.
Solutions will need to be so simple that a wide range of users can get by. The questions of whether a CBDC can be utilized in an offline environment or how easy will a CBDC be used for users, and how a CBDC can be integrated into different existing financial systems also need to be addressed by the participants in the hackathon.
In all, the ability of the designed solutions to bring financial inclusion to those who needed it the most is also a key consideration. Developers must ascertain how a CBDC enables spending power from traditionally marginalized communities using such products as Peer-2-Peer (P2P) lending.
Submissions into the Ripple CBDC Innovate challenge will be open from September 8 to October 31 this year, while the Pitching and Judging event has been slated from the 1st to the 4th of November. The final winners will be announced from November 16 through 18 this year.
Ripple Looking to Cover Milestones With CBDC Innovation
While most country’s Central Banks are often in charge of developing the appropriate framework for their CBDCs, the private sector players are also a key component should the development of CBDCs be successful.
Ripple Labs is looking to cover unique milestones with its CBDC innovations, a move that will help the company better serve countries like Bhutan and Palau where it currently has partnerships to help develop their CBDCs.
The newly announced hackathon might play a good role in helping the firm expand its solution suite across the board.