Ripple partners with Colombia’s central bank to explore blockchain use cases

Ripple partners with Colombia’s central bank to explore blockchain technology use cases in the South American country. In an effort to improve the high-value payment system of the country, Banco de la República will collaborate with the information and communications ministry to conduct pilot projects. These projects will explore the utilization of Ripple’s CBDC Platform to enhance the payment system in Colombia.

Ripple partners with Colombia’s central bank to explore blockchain use cases

Colombia’s central bank, Banco de la República, has embarked on a partnership with Ripple to investigate potential applications of blockchain technology within the country.

In collaboration with the information and communications ministry, they will pilot various use cases aimed at enhancing Colombia’s high-value payment system using Ripple’s CBDC Platform. Joe Vollono, the director of CBDC business development at Ripple, mentioned that the discussions with Banco de la República have been ongoing for more than a year.

Additionally, the pilot project will involve the participation of Peersyst Technology, a Spain-based blockchain technology firm.

When we’re talking about the high-value payment system, what we’re generally referring to is large scale, wholesale payments, RTGS systems, and related financial operations and infrastructure that might benefit from leveraging distributed ledger technology. And so that’s really the focus of the exploration here.

Vollano

In addition to enhancing speed, the endeavors have the potential to bring about cost reductions in the long run. Ripple, in a statement, disclosed that the project will continue until the conclusion of 2023. It emphasized that the tests will be conducted within a controlled environment to ensure that resources are not compromised.

Ripple has previously collaborated with monetary authorities in Hong Kong, Montenegro, Bhutan, and Palau.

One of the advantages of the reasons to explore this technology for high value payments is around the infrastructure, and the idea that this these transfers can be done with finality, speed and scale in a way that existing infrastructure may not provide for the same flexibility.

Vollono

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