Colombia’s central bank to test Ripple’s CBDC platform

Ripple and Banco de la República have formed a partnership to explore the possibilities offered by the blockchain. The colombian central bank will rely on the CBDC platform of the XRP.

This Thursday, Ripple announced the launch of a pilot project with the central bank of Colombia and the blockchain startup Peersyst.

As advertised, Banco de la Repúblicain collaboration with the Colombian Ministry of Information Technology and Communications, wishes to identify use cases based on the blockchain technology with the aim of improving the country’s payment system.

The Central Bank of Colombia will be based on Ripple’s CBDC platform, specially designed for governments. Powered by XRP Ledgerthe solution, which made its debut last month, facilitates the issuance of central bank digital currencies.

Potential efficiencies can be assessed through the results obtained in the development of a solution with blockchain technology, which manages to improve and complete processes in entities securely and efficiently,” commented Mauricio Lizcano, Colombia’s Minister of Information Technology and Communications, in a statement.

Last year, the Colombian government declared its interest in CBDC to combat tax evasion.

“By harnessing the power of Ripple CBDC platformthis project will pave the way for transformative advances in the use of blockchain technology within the public sector,” proclaimed James Wallis, Vice President CBDC at Ripple.

The pilot project, launched as part of the Ministry of Information Technology and Communications’ third phase of experimentation around blockchain, will run until the end of the year.

The third project partner, Peersystpreviously collaborated with Ripple on the development of an EVM sidechain for deploying Ethereum smart contracts on XRP Ledger.

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