Ripple to Help Colombia’s Central Bank Explore CBDC Use Cases

Godfrey Benjamin
June 15, 2023
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Blockchain payment company Ripple Labs Inc has entered a strategic partnership deal with Colombia’s Central Bank Banco de la República and together, they intend to explore blockchain technology use cases featuring Central Bank Digital Currency (CBDC). 

Notably, the partnership involves the Ministry of Information and Communications Technologies (MinTIC) and a specialized blockchain technology firm known as Peersyst Technology. 

According to a Twitter post by Peersyst, the objective of the alliance is to evaluate the potential efficiencies of a solution using the newly launched Ripple CBDC Platform based on the core technology of the XRPLedger (XRPL) to improve use cases on the high-value payment system. Hence, this pilot phase would be developed as part of the third phase of blockchain experimentation led by MinTIC.

In its entirety, this third phase is focused on sensitising both national and territorial public entities on how payment systems and data management can be revolutionized using blockchain technology’s speed, scalability, and transparency. 

The sensitization process will be carried out through interactive and collaborative real-world application experiments. Also, Ripple’s CBDC Platform will be tested in a controlled environment which does not jeopardize public resources.

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Ripple and Colombia Collaboration: The Significance 

Attempting to explain the significance of the project, Minister Mauricio Lizcano, ICT Minister noted that “potential efficiencies can be evaluated through the results obtained in the development of a solution with blockchain technology, which manages to improve and complement the processes in the entities in a safe and efficient way. In addition, it will provide a technological solution (Prototype), which will allow simulations of different use cases in the high-value payment system.”

James Wallis, the Vice President of Central Bank Engagements and CBDCs also believes that this forward-thinking approach of the Colombia Central Bank and MinTIC will be the birth of an era of innovativeness in the digital space. 

Per his statement, onboarding the Ripple CBDC Platform based on the XRPL will make way for transformative advancement in the use of blockchain technology in the public sector. The partnership highlights the growing recognition of Ripple and the firm’s efforts to be a dominant goto Web3 firm among Central Banks building their own CBDCs

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.