The latest report showed that Ripple Labs has formed a partnership with the central bank of Colombia, Banco De la República. The collaboration reportedly aims at creating a central bank digital currency, CBDC, powered by Ripple in the region.
The creator of the XRP token, Ripple Labs, has been engaging in a never-ending legal battle with the US Securities and Exchange Commission when the latter accused the exchange for sales of unregistered securities in 2021. However, Ripple refused to let the lawsuit deter its company’s progress and expansion across the globe.
According to the report, Ripple Labs recently signed a partnership contract with Banco de la República, the apex bank in Colombia. The two partners alongside the country’s Ministry for Information and Communications Technologies, MinTIC, aim at creating a platform for Ripple’s CBDC.
Furthermore, the report revealed that MinTIC is currently running a project exploring the potential of blockchain, with the permission of the Digital Government Directorate. The project is part of the Colombian central bank’s plan to strengthen its payment services leveraging the XRP Ledger (XRPL).
Minister Mauricio Lizcano, a panel member of the MinTIC project, pointed out that the project would create a technological solution prototype that would allow users to access simulations of diverse utility cases in the high-profile payment system of the country.
In addition, the Minister stated that the potential efficiency of their payment system can be analyzed via the results gotten from the solution backed with blockchain tech, which provides more secure and efficient transaction procedures.
Ripple’s XRPL Helps Entities Create Their CBDC
According to Ripple’s Vice President of CBDC and Central Bank Engagement, James Wallis, the collaboration would help to open a new strategy of operations for organizations in the rapidly growing digital era.
In addition, he said the partnership can create ways for more transformative development by harnessing the potential of blockchain tech in the public space.
The VP added that the alliance between the firm and Colombia displayed the firm’s commitment to encouraging innovations and efficiency as well as empowering public entities to take full advantage of the potential of transparent and secure transactions that blockchain provides.
Before the announcement of the partnership, Ripple launched its end-to-end XRPL-backed CBDC project that allows central banks, governments, and other financial firms their digital currencies. This innovation would help the entities to solve problems associated with CBDC enforcement, according to the report.
Meanwhile, the native coin of Ripple Labs, XRP, is yet to react to the new development and expansion of the firm. It continues to trade below the $0.48 price level. However, crypto experts speculated that only time would tell if the recent expansion and partnership in the firm would push up XRP’s value, breaking the bearish trend it is locked in.
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