While Ripple continues to wage a widely publicized legal battle against the United States Securities and Exchange Commission (SEC), the blockchain company has not let regulatory hurdles stand in the way of its innovation and expansion of its reach, including in Colombia.
As it happens, Colombia’s central bank, Banco de la República, has announced a partnership with Ripple alongside the Ministry for Information and Communications Technologies (MinTIC) to implement Ripple’s central bank digital currency (CBDC) platform, according to a press release on June 15.
What project represents
With this effort, powered by the XRP Ledger (XRPL) blockchain, the Colombian central bank aims to boost its high-value payments system as part of the third phase of MinTIC’s blockchain experimentation under the guidance of the Directorate of Digital Government.
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Commenting on the project, MinTIC Minister Mauricio Lizcano highlighted that the project would deliver “a technological solution (prototype), which will allow simulations of different use cases in the high-value payment system.” Additionally:
“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.”
Meanwhile, James Wallis, Ripple’s VP of Central Bank Engagement and CBDCs, explained that such cooperation would “unlock new ways organizations operate in the digital era” and “pave the way for transformative advancements in the utilization of blockchain technology within the public sector.”
As Wallis added:
“This partnership showcases our commitment to driving innovation and efficiency, ultimately empowering public entities to unlock the full potential of secure and transparent transactions.”
Earlier, Ripple unveiled its end-to-end XRPL-driven CBDC solution to allow central banks, financial service providers, and governments to launch their own digital currencies, helping them solve problems in CBDC implementations, as Finbold reported on May 18.
XRP price analysis
Meanwhile, XRP, the token at the center of Ripple’s ecosystem, is yet to show any reaction to this development, as, at press time, it was changing hands at the price of $0.48, recording a drop of 5.80% in the last 24 hours and 8.48% across the previous seven days but still a 13.60% increase on its monthly chart.
Finally, time will tell whether Ripple’s recent expansion success manages, after all, to push the XRP token toward breaking out of the bearish cycle that has engulfed the majority of the cryptocurrency sector and caused XRP to lose $3 billion from its market capitalization in a single day.
According to pseudonymous crypto analyst Altcoin Sherpa, it certainly has enough strength to achieve this in the near future, even reaching as high as $0.8, provided it breaks through the critical supply zone between $0.53 and $0.6.
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