Colombian Central Bank Partners With Ripple To Pilot CBDC

The Colombian central bank, Banco de la República, has partnered with Ripple to pilot a central bank digital currency (CBDC) on the XRP Ledger. The pilot will test the use of Ripple’s CBDC Platform to improve the efficiency and security of Colombia’s high-value payment system.

The Ripple CBDC Platform is a modular platform that can be used to create and issue CBDCs, as well as to facilitate interbank payments. The platform is designed to be scalable, secure, and energy-efficient.

The pilot will be conducted in two phases. The first phase will focus on testing the technical feasibility of the Ripple CBDC Platform. The second phase will focus on testing the platform’s performance and scalability.

The pilot is expected to be completed by the end of 2023. If the pilot is successful, Banco de la República could decide to launch a CBDC based on the Ripple CBDC Platform.

The pilot is a significant development for the use of blockchain technology in the public sector. It is the first time that a central bank has partnered with Ripple to pilot a CBDC. The success of the pilot could pave the way for other central banks to adopt blockchain technology for CBDCs.

James Wallis, VP, central bank engagements and CBDCs, Ripple, says:

“By harnessing the power of the CBDC Platform, based upon the XRPL, this project will pave the way for transformative advancements in the utilization of blockchain technology within the public sector.”