Colombia's central bank, Banco de la República, has partnered with Ripple, a payment protocol most famous for its native token XRP, to explore the use cases of blockchain technology. The partnership will see the two sides experimenting with the technology to improve the country's payment system using Ripple's central bank digital currency (CBDC) platform. Colombia's Ministry of Information and Communications Technologies (MinTIC) will oversee the pilot project. - The CBDC platform will be experimented with in a controlled environment without endangering public resources.
- The pilot project will continue by the end of 2023.
- Spain-based blockchain technology firm Peersyst Technology will also be a partner of the initiative.
- The project mainly aims to improve speed, reduce costs, and demonstrate blockchain technology's utility to the public.
- Ripple's director of CBDC business development, Joe Vollono, said they had been in talks with the Colombian central bank for over a year.
- The collaboration came nearly a month after Ripple launched its CBDC platform, allowing central banks, governments, and financial institutions to issue their own digital currency.
In April, the firm also signed a deal with the Central Bank of Montenegro to jointly develop a strategy and pilot program for a Montenegrin digital currency in the form of a CBDC or a national stablecoin. - At the time, RippleX's vice president for central bank engagements and CBDCs, James Wallis, said they were in negotiations with dozens of central banks worldwide for CBDC projects.
- Ripple's CBDC platform is currently used as the basis for similar pilot projects in several other countries, including Hong Kong, Bhutan, and Palau.
- Last year, the Colombian government announced its plans to introduce a CBDC.
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