Ripple’s partnership with Colombia’s central bank is another step towards its vision of “enabling the Internet of Value”.
Blockchain solutions provider Ripple has teamed up with Colombia’s central bank Banco de la República to pilot blockchain technology in the country. The test is part of a broader initiative by the Ministry of Information and Communications Technologies (MinTIC) to showcase the real-world utility of blockchain.
How will Ripple and Banco de la República Collaborate?
The pilot program will run through 2023 and use Ripple’s central bank digital currency (CBDC) platform. This platform enables central banks to customize their CBDCs according to their specific needs and preferences.
The pilot will leverage the XRP ledger and demonstrate how blockchain technology can speed up, scale up, and make transparent high-value payments. Also, it will show how blockchain can reduce costs and risks for participants and boost financial inclusion and innovation.
According to the press release, MinTIC will provide oversight for the project. Ripple and Banco de la República will also work closely with MinTIC to educate the public on enhancing payment systems and data management.
Beyond Legal Challenges
Ripple’s partnership with Colombia’s central bank is another step towards its vision of “enabling the Internet of Value”. The company has been expanding its global reach by collaborating with various financial institutions and payment providers. Already, it has partnered with MoneyNetint in France, Xbaht in Sweden, CIBC in Canada, and Lemonway in Europe. Meanwhile, Ripple has also helped the central banks in Hong Kong, Bhutan, Palau, and Montenegro to pilot CBDCs.
These partnerships have come amid Ripple’s ongoing legal battle with the US Securities and Exchange Commission (SEC). The SEC accused the company of selling $1.3 billion worth of unregistered securities in the form of its XRP token. Ripple denies this allegation, claiming that XRP is simply a digital asset that enables cross-border payments.
With the case nearing its end, analysts believe it would impact the future of the crypto industry. Many experts think a Ripple win would cause a market rally and set a bull run in motion. To this, Brad Garlinghouse, CEO of Ripple, said that they are “on the right side of history with what we’re trying to accomplish”.
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