Ripple, the blockchain technology company, has announced that its native cryptocurrency XRP has received approval under the Dubai Financial Services Authority’s (DFSA) virtual assets regime. This approval allows virtual asset firms licensed within the Dubai International Financial Centre (DIFC) area to utilize XRP. The news comes after the DFSA previously approved Bitcoin, Ethereum, Litecoin, and Toncoin.
Ripple has been vocal about its plans to expand within Dubai, and the company has chosen the DIFC as its Middle East and North Africa (MENA) headquarters. Around 20% of Ripple’s customers are based in the MENA region. The approval by the DFSA solidifies Ripple’s position and presents opportunities for the wider adoption and use of XRP in the region.
In addition to the approval from the DFSA, Ripple also announced its partnership with the National Bank of Georgia as the official technology partner for its digital lari pilot project. Ripple was selected from a shortlist of nine candidates for this role. The pilot project involves the tokenization of the Georgian lari (GEL) and explores the potential applications of a central bank digital currency (CBDC) in the public sector, business, and general retail usage.
While the digital lari pilot project does not directly involve the use of XRP, it will leverage Ripple’s CBDC Platform for CBDCs. This platform is powered by the XRP Ledger (XRPL), Ripple’s decentralized blockchain technology. The partnership with the National Bank of Georgia highlights Ripple’s commitment to advancing the adoption of blockchain and digital currencies on a global scale.
Ripple’s collaboration with the National Bank of Georgia is not an isolated case. The company has previously announced pilot programs with governments in Bhutan, Palau, Colombia, Montenegro, and Hong Kong. These programs aim to explore the potential benefits of blockchain technology and digital currencies in various sectors. Ripple’s engagement with over 20 other countries further demonstrates its dedication to fostering innovation and collaboration in the global financial landscape.
The approval of Ripple’s XRP token under the DFSA’s virtual assets regime is a significant milestone for the company. It opens up avenues for virtual asset firms in the DIFC area to leverage XRP and reinforces Ripple’s presence in Dubai. Furthermore, the partnership with the National Bank of Georgia showcases Ripple’s expertise in supporting central banks’ exploration of CBDCs. As Ripple continues to expand its reach and engage with governments worldwide, the potential for blockchain technology and digital currencies to revolutionize the financial industry becomes more apparent.
