Ripple Inks an Important Deal With a Major Bank: Details

One of the biggest banks in Egypt – Commercial International Bank (CIB) – teamed up with Ripple “to implement blockchain technology, enhancing the efficiency of cross-border payments.” The financial institution also hopped on the non-fungible token field, allowing customers to create unique and collectible NFTs.

“This initiative establishes a digital token ecosystem for the tourism industry, streamlining payments and offering loyalty rewards to travelers,” the bank emphasized.

The CIB’s leap into crypto coincides with the Egyptian government’s intentions to actively explore the potential of blockchain technology and harness it for “innovative advancements across diverse sectors.”

This is the second major local financial institution to announce a partnership with the American company, with the National Bank of Egypt  so in 2021.

Ripple has been eyeing global expansion in the past few years due to the regulatory uncertainty in the US and the ongoing lawsuit against the United States Securities and Exchange Commission (SEC). Other financial institutions that have inked deals with the company over the years include Thailand’s oldest bank – Siam Commercial Bank (SCB), and Morocco’s Attijariwafa Bank

Ripple and CBDCs

Ripple has also supported the efforts of several countries to launch a central bank digital currency (CBDC). In 2021, it collaborated with the Royal Monetary Authority (Bhutan’s central bank) to create a digital version of the ngultrum.

The small land-locked country in the Himalayas is  to be the only carbon-negative nation across the globe. Ripple explained that the CBDC would double down on that policy:

“Ripple’s commitment to sustainability was important for Bhutan. The CBDC solution is carbon-neutral and, because it’s based on the public XRP Ledger, is 120,000x more energy efficient than proof-of-work blockchains.”

Another institution that picked Ripple to introduce a CBDC plot project is the National Bank of Georgia (NBG). James Wallis (VP of Central Bank Engagements at the company) claimed the solution could drive transformative progress in the country’s public sector.