Ripple to form a partnership with Colombia’s central bank
Despite its well-publicized legal fight with the US Securities and Exchange Commission (SEC), blockchain startup Ripple has not allowed regulatory barriers to slow down its innovation or prevent it from expanding internationally, notably into Colombia.
In a news statement dated June 15th, Ripple and Colombia’s Ministry for Information and Communications Technologies (MinTIC) established a cooperation to establish Ripple’s central bank digital currency (CBDC) network in Colombia.
“The project will result in a technological solution (prototype) which will allow simulations of different use cases in the high-value payment system,” as noted by Mauricio Lizcano, Minister of Information and Communications Technology (MinTIC). Additionally:
“Potential savings may be measured by how well a blockchain-based solution can streamline existing internal operations and introduce new ones that are both secure and effective.”
The vice president of Ripple’s central bank engagement and CBDCs, James Wallis, said that working together will “unlock new ways organisations operate in the digital era” and “pave the way for significant improvements in the utilisation of blockchain technology in the public sector.”
Also, Wallis said: “As a result of this collaboration, “public entities will be able to unlock the full potential of secure and transparent transactions,” demonstrating our commitment to fostering innovation and efficiency.”
Earlier, as reported by Finbold on May 18th, Ripple presented its end-to-end XRPL-driven CBDC approach to enable central banks, financial service companies, and governments to introduce their own digital currencies, hence aiding in the resolution of issues related to CBDC deployments.
Meanwhile, XRP, Ripple’s central token, has not yet shown any reaction to this development, trading at $0.48 at the time of writing, down 5.80% in the last 24 hours and 8.48% over the previous 7 days, but still up 13.60% on its monthly chart.
Time will tell whether Ripple’s recent growth success is enough to help the XRP token break out of the negative cycle that has consumed the bulk of the cryptocurrency industry and led XRP’s market value to drop by $3 billion in a single day.
If it can break through the crucial supply zone between $0.53 and $0.6, as the fictitious crypto expert Altcoin Sherpa predicts it would, it may potentially reach as high as $0.8 in the near future.