Blockchain-based payments platform, Roxe announced on Tuesday the launch of a central bank digital currency (CBDC) payments network running on its settlement infrastructure.
The press release shared with Finance Magnates detailed that the Roxe Instant Settlement Network will allow monetary regulators to issue, manage and distribute CBDCs across the globe. Additionally, the CBDCs can interoperate with other digital fiats and can be used by the other participants on the network.
Launched last year, Roxe is a payment clearing and settlement network for both traditional and digital assets. The company aims to tap the cross-border payments transfer market with global bank partnerships. Though its model is similar to Ripple, the company claims that it is much better and efficient.
Mentioning the advantages of the CBDC payment network, the San Francisco-based company detailed that the central banks will receive “faster, less expensive and more reliable cross-border payments.”
Moreover, the Roxe network provides a pre-built infrastructure to connect with central, domestic and foreign bank members in order to send, receive and exchange digital currency.
Will Central Banks Opt for Private CBDC Infrastructure?
Roxe’s services for the CBDC came when several countries, big or small, were studying the feasibility to launch a digital version of fiat. While most of the countries are still in the very early phase, many central banks in Europe have initiated pilots with digital euros. China is the first major economy to complete the development process and is aggressively testing the digital yuan in the real-world.
Though central banks are usually developing digital giants behind closed doors and not inking partnership deals aside from establishing financial institutions for distribution, it is to be seen if a private player like Roxe can convince any monetary regulator to use its infrastructure.