Colombia’s central bank to pilot Ripple’s CBDC Platform
Colombia's central bank will explore blockchain use cases for Ripple's CBDC Platform.
Ripple has confirmed its partnership with Banco de la República, the Central Bank of Colombia, for pioneering initiatives in blockchain technology.
The central bank and the Ministry of Information and Communications Technologies (MinTIC) will participate in a pilot program until the end of 2023 to assess “high-value payments” using Ripple’s CBDC Platform.
This pilot phase aims to familiarize “national and territorial public entities” with the technology, demonstrating its capabilities in improving payment systems and data management.
ICT Minister Mauricio Lizcano said the program would look at different use cases for CBDC Platform. He added:
“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.”
Ripple’s VP of Central Bank Engagements & CBDCs, James Wallis, said CBDC Platform will drive blockchain use within the public sector forward. On collaborating with the central bank, he further commented:
“This partnership showcases our commitment to driving innovation and efficiency, ultimately empowering public entities to unlock the full potential of secure and transparent transactions.”
Ripple CBDC Platform
Ripple described the CBDC Platform as “a frictionless end-to-end solution for central banks, governments, and financial institutions to issue their own central bank digital currency.”
Based on the XRP Ledger (XRPL,) CBDC Platform enables users to manage all aspects of a Central Bank Digital Currency (CBDC), including wholesale and retail CBDC banking models.
Last month, Ripple CTO David Schwartz confirmed that CBDC Platform could interact with the XRPL and use the XRP token as a bridge currency.
The comment was made as confusion erupted over XRP’s role within CBDC Platform, with some pointing out that CBDC Platform does not need XRP to operate.
Schwartz acknowledged that CBDC Platform clients might choose not to use XRP. However, Ripple’s approach was to “remove technical barriers” and let clients decide instead of forcing the matter. “This makes for a better product experience,” he said.