June 15, 2023 at 16:27 GMTModified date: June 15, 2023 at 16:27 GMT
June 15, 2023 at 16:27 GMT

Ripple partners with the Central Bank of Colombia

Ripple and Peersyst have announced their partnership with the Banco de la República to explore the application of blockchain technology.

Ripple partners with the Central Bank of Colombia

Ripple and Peersyst have announced a partnership with the Banco de la República (Central Bank of Colombia) to explore the application of blockchain technology.

According to the released statement, the apex bank will leverage Ripple’s CBDC and its open source blockchain, XRP Ledger, to improve the country’s payment system. The development is the third phase of a broader scheme by the central bank and the Ministry of Information and Communications Technologies (MinTIC) to incorporate blockchain technology in its financial system. 

Per the statement, the goal of this phase is to educate entities on the features, benefits and applications of blockchain technology. MinTIC will test the use of Ripple’s CBDC to further demonstrate this. The phase is expected to run through the rest of the year. Colombia’s ICT Minister Mauricio Lizcano highlighted the benefits that blockchain technology can bring to the country’s financial sector.

“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,” he said.

Peersyst to implement project  

While Ripple provides the platform and technology, blockchain solutions company Peersyst will be at the forefront of the project development and end-to-end implementation. CEO Ferran Prat was thrilled with the choice of Ripple, emphasising its capabilities and reputation for applying blockchain technology within the central bank’s operations, particularly in the realm of high-value payments. 

“Our partnership with MinTIC as a reference technology firm for the implementation of blockchain technology in Latin America requires us to meet the most demanding criteria when selecting technologies.

“In the case of payments and technology for central banks, Ripple is a benchmark leader in the industry and one of the best allies to apply the potential of its large-value payment system’s technology at Banco de la República.” 

Ripple continues to bridge gap with TradFi

Ripple has consistently demonstrated its strong presence and proactive role within the financial sector, making significant advancements in connecting blockchain technology with traditional financial entities. One of such groundbreaking acts was the launch of the Ripple CBDC Platform; a solution that enables governments and central banks to issue their own stable coins.

The platform was designed with the goal of helping central banks to provide digitised financial services to people across the world, especially the unbanked. 

“As a trusted partner to several central banks, we believe this platform will help solve problems for many central banks and governments who are devising plans and developing a technology strategy for CBDC Implementations,” the VP of Central Bank Engagements & CBDCs, James Wallis said.

Ahead of its partnership with the Central Bank of Colombia which will present the first large-scale use case, Ripple CBDC is already gaining accolades. It ranked top in a list of 15 CBDC providers by Juniper Research.