Ripple's CBDC Tech Chosen for Eco-Friendly Insurance Settlements by Tech Company

ripple cryptocurrency in the bright rays on background with statistics chart and arrow going up

• The Nairobi-based technology company seeks to revolutionize green insurance through its Ripple CBDC blockchain-based application.
• Using the Shamba network and geospatial data, its parametric solution streamlines climate payments, integrating CBDCs for greater local accessibility.

In a recent interview on one of The Futurum Group’s podcasts, Kennedy Ng’ang’a, founder and CEO of a Nairobi-based tech startup, shared his ambitious plans for the company, focused on facilitating green data on the blockchain. The innovative company presented its blockchain oracle service, Block Beamer, during the CBDC 2023 Innovator Challenge, organized by Ripple.

During the interview, Ng’ang’a explained that his company specializes in making data related to the natural environment available on the blockchain, providing crucial information such as vegetation cover, forest fire incidence and rainfall levels. This data is critical for applications such as weather insurance.

The company’s strategy seeks to leverage ecological data stored on the blockchain to drive parametric insurance. Ng’ang’a emphasized that its application targets institutional users, including insurance corporations, banks, microfinance, and microinsurance organizations.

The importance of the Ripple CBDC Platform

The Ripple CBDC Platform plays a pivotal role at this juncture. Since its introduction in May, it has captured the interest of ious central banks and private financial institutions, with as many as 30 countries possibly reaping benefits, including nations such as Palau, according to reports. The conversation with Ng’ang’a further highlights the advantages offered by this platform.

During the interview, the central importance of CBDCs in supporting humanitarian and environmental initiatives was highlighted .Ng’ang’a emphasized that CBDCs play a crucial role in driving web3-based applications, creating a hybrid solution that is beneficial to both corporate entities and humanitarian agencies providing assistance to those affected by climate hazards.

Nganga discussed the role of the Shamba network in its parametric insurance solution

Oracle Shamba, a leading ecological data oracle, collects information from satellites operated by entities such as NASA and the European Space Agency. This data is analyzed using geospatial science and machine learning. The oracle then moves the data to the blockchain, triggering smart contracts and applications on the blockchain.

The parametric insurance solution uses data from Oracle Shamba to inform insurance decisions. When it detects weather risks, such as droughts, it triggers smart contracts to release CBDC funds stored within them. This approach facilitates efficient payouts to affected populations, integrating CBDCs with local digital payment services for greater accessibility. Ng’ang’a revealed that they have also incorporated an outbound function to enable payments in local currencies.

It is relevant to underline that the application is being built on the Ripple EVM sidechain environment . The connection to the Ripple CBDC platform plays a vital role, enabling CBDCs deployed on the mainnet to be under the control of the smart contracts that drive this innovative solution.

Ripple in Talks with Governments to Develop CBDCs

Ripple is in talks with more than a dozen governments around the world to drive the development of Central Bank Digital Currencies (CBDCs) using its blockchain-based technology.

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Despite facing a U.S. lawsuit from the Securities and Exchange Commission (SEC), Ripple has had success internationally, collaborating with five governments on CBDC pilot projects. The company is expanding its global presence, using London as a strategic hub for hiring and growth, taking advantage of the regulatory clarity and abundance of financial talent in the city.

While the recent district judge’s ruling in July was considered a significant victory for Ripple, regulatory uncertainty in the U.S. has led the company to prioritize international markets, with plans to make 80% of its hires outside the U.S. by 2023.