Ripple has confirmed its partnership with Banco Repubblica, the Central Bank of Colombia, on its pioneering work in blockchain technology.

The central bank and the Ministry of Information and Communication Technology (MinTIC) will participate in a pilot program to evaluate “high value payments” using Ripple payments until the end of 2023. CBDC platform.

This pilot phase aims to disseminate the technology to “national and local governments” and demonstrate its capabilities in improving payment systems and data management.

ICT Minister Mauricio Lizcano said the program would explore different use cases for the CBDC platform. he added:

“Potential efficiencies can be assessed through the results obtained in developing solutions using blockchain technology that improve and complement processes within entities in a safe and efficient manner.”

Ripple’s Vice President, Central Bank Engagements and CBDC, James Wallis said the CBDC platform will drive the use of blockchain within the public sector. Regarding cooperation with central banks, he further commented:

“This partnership demonstrates our commitment to driving innovation and efficiency, ultimately enabling public bodies to unlock their full potential for safe and transparent transactions.”

Ripple CBDC Platform

Ripple explained that CBDC platform As “a frictionless, end-to-end solution for central banks, governments and financial institutions to issue their own central bank digital currencies.”

A CBDC platform based on the XRP Ledger (XRPL) allows users to manage all aspects of Central Bank Digital Currencies (CBDC) including wholesale and retail CBDC banking models.

Last month, Ripple CTO David Schwartz confirmed that the CBDC platform could interact with XRPL and use the XRP token as a bridge currency.

This comment comes amidst a flurry of confusion over the role of XRP within the CBDC platform, with some pointing out that the CBDC platform does not require XRP to operate.

Schwartz acknowledged that clients of the CBDC platform may choose not to use XRP. However, Ripple’s approach was to “remove the technical barriers” and let the client decide rather than force the issue. “This improves the product experience,” he said.

An article about the Central Bank of Colombia to pilot Ripple’s CBDC platform first appeared on CryptoSlate.

By Jules

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