Banco de la Repblica, Colombia’s central bank, has teamed up with blockchain startup Ripple to investigate the potential applications of blockchain technology.Ripple claims that Banco de la Repblica will pilot its high-value payments system on the CBDC platform as part of a project with the Ministry for Information and Communications Technologies (MinTIC).The program is a component of MinTIC’s blockchain experimentation phase.
The Ripple CBDC platform, according to the company, “will be experimented with and tested in a controlled environment without compromising public resources.”
Mauricio Lizcano, Colombia’s Minister of Information Technologies and Communications, stated in a statement that “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.”
According to James Wallis, vice president of Central Bank Engagements and CBDCs at Ripple, “this project will pave the way for transformative advancements in the utilization of blockchain technology within the public sector by harnessing the power of the CBDC Platform, based upon the XRPL.”To facilitate transactions and lower tax evasion, the Colombian government said in August 2022 that it was considering the creation of a central bank digital currency. It also announced plans to outlaw cash transactions for quantities greater than 10 million Colombian pesos ($2390).