Blockchain payment company Ripple Labs Inc has signed a strategic partnership agreement with the Central Bank of the Republic of Colombia and together they intend to explore use cases of blockchain technology with Central Bank Digital Currency (CBDC).
In particular, the association involves the Ministry of Information and Communication Technologies (MinTIC) and a company specializing in blockchain technology known as Peersyst Technology.
According to a Twitter post by Peersyst, the aim of the alliance is to evaluate the potential efficiencies of a solution using the recently launched Ripple CBDC platform, based on the core technology of XRPLedger (XRPL) to improve use cases in edge payments. . system. Therefore, this pilot phase would be developed as part of the third phase of blockchain experimentation led by MinTIC.
As a whole, this third phase is focused on raising the awareness of public entities, both national and territorial, on how payment systems and data management can be revolutionized with the speed, scalability and transparency of blockchain technology.
The sensitization process will be carried out through interactive and collaborative experiments of application in the real world. Furthermore, Ripple’s CBDC platform will be tested in a controlled environment that does not endanger public resources.
Ripple and Colombia Collaboration: The Importance
When trying to explain the importance of the project, Minister Mauricio Lizcano, Minister of ICT, highlighted that “the 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 way safe and efficient. In addition, it will provide a technological solution (Prototype), which will allow simulating different use cases in the high-value payment system”.
James Wallis, Vice President of Central Bank Commitments and CBDC, also believes this innovative approach by the Central Bank of Colombia and MinTIC will usher in an era of innovation in the digital space.
According to his statement, the incorporation of the XRPL-based Ripple CBDC platform will usher in a transformative breakthrough in the use of blockchain technology in the public sector. The partnership highlights Ripple’s growing recognition and the company’s efforts to be a dominant Goto Web3 company among central banks building their own CBDCs.