In a move aimed at investigating the potential applications of blockchain technology in the realm of Central Bank Digital Currency (CBDC), the Colombian Central Bank, Banco de la Republica, has entered into a strategic cooperation agreement with Ripple Labs Inc, a prominent blockchain payments startup.
The collaboration between the two entities will focus on researching the possibilities offered by blockchain technology, specifically in relation to the recently launched Ripple CBDC Platform. Built on the XRPLedger’s core technology, this platform has the potential to enhance use cases in the high-value payment system. The partnership aims to create a pilot program during the third round of blockchain research conducted by the Ministry of Information and Communications Technologies (MinTIC) in conjunction with Peersyst Technology, a specialist blockchain technology startup.
As part of the collaboration, efforts will be made to raise awareness among national and territorial governments about the transformative power of blockchain technology in payment systems and data management. Real-world application trials will be conducted to encourage participation from various stakeholders, with a focus on ensuring the safety and efficiency of the public infrastructure during the testing of Ripple’s CBDC Platform.
Mauricio Lizcano, the Minister of Information and Communications Technologies, highlighted the potential efficiencies that can be achieved through the development of blockchain solutions, which can improve and complement existing processes in a secure and efficient manner. The collaboration aims to provide a technical prototype that enables simulations of different high-value payment system use cases.
James Wallis, Vice President of Central Bank Engagements and CBDCs at Ripple, commended the Colombian Central Bank and MinTIC for their forward-thinking approach, stating that they are spearheading a new era of digital innovation.
Compiled by Coinbold