Colombia’s central bank partners Ripple (XRP)

San Francisco headquartered fintech firm Ripple established a partnership with the Central Bank of Colombia.

Ripple is a San Francisco headquartered blockchain company. In the crypto sector, this firm is known for its global payment services via the use of XRP coin. Ripple Labs is the backend engineering team behind XRP coin, which runs on the XRP ledger (XRPL).

On 15 June 2023, Banco de la República announced its partnership with Ripple. alongside the Ministry for Information and Communications Technologies (MinTIC) to implement Ripple’s central bank digital currency (CBDC) platform.

Under this partnership, Ripple will provide highly efficient payment blockchain network support with XRPL (a Proof-of-stake crypto network, for the Central Bank. The testing of the future’s highly efficient payment system under the partnership with Ripple, will remain under the guidance of the Directorate of Digital Government.

With such testing, the Central Bank will try to figure out the potential ability of blockchain technology, so that highly efficient payment transactions can be processed with more security.

On this government-level collaboration, Ripple’s VP of Central Bank Engagement and CBDCs, James Wallis said that such a partnership will help to boost the technical advancement in the digital payment sector & also bring a better use case of the blockchain technology within the public sector.

XRP coin price action

Because of this partnership news, the trade price of XRP coin failed to gain any kind of upside momentum. The current trade price of this coin is 5.56% down over the last 24 hours’ trade price, as a part of the usual market amid high regulatory uncertainty in the US.

Ripple vs SEC 

No doubt that Ripple is showing multiple achievements via government-level partnerships, for a few years, but it is a bitter truth that Ripple is failing to establish a better relationship with local regulatory bodies in the US.

In Dec 2020, the United States Securities Exchange Commission (SEC) sued Ripple Labs & Ripple’s executives over the sale of $1.3 billion worth of XRP coins publicly. 

According to the SEC’s allegations, XRP is an unregistered security token & sale of XRP tokens was against Federal Securities laws.

So far to this date, that legal fight is going on in the court, and the case’s present turn Ripple is standing in a better position against the SEC agency.

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