Banco de la República, the central bank of Colombia, has partnered with Peersyst and Ripple to pilot Blockchain technology on r XRP.
Colombia’s Ministry of Information and Communication Technologies (MinTIC) will oversee the project, which will use the central bank’s digital currency (CBDC) platform. thrown recently by Ripple.
Ripple and @peersyst are partnering with Colombia’s @BancoRepublica in conjunction with @Ministerio_TIC to pilot use cases that will enhance Colombia’s high-value payment system.
Learn more about the partnership: https://t.co/X9jyJ3pvDa
— Ripple (@Ripple) June 15, 2023
An ad published on June 15 he says that the pilot will run until 2023 and states that his purpose is to demonstrate the usefulness of the technology to the public:
“The objective of the third phase of the blockchain experimentation of the MinTIC will be to educate national and territorial public entities through interactive and collaborative experiments of real-world application of how the unprecedented speed, scalability and transparency of blockchain technology can revolutionize payment systems and data management”.
The platform also serves as the basis for similar pilot projects in Hong Kong, Bhutan, Palau and Montenegro.
CBDC team making significant progress with the launch of the new #cbdc platform Four countries now announced Grateful to the team at @Ripple who are developing the best platform for the future of Digital Currencies Palau Bhutan Montenegro Hong Kong …
— Antony Welfare (@AntonyWelfare) May 19, 2023
Ripple’s continued growth comes amid ongoing legal challenges stemming from a Securities and Exchange Commission (SEC) lawsuit against the company filed in 2020.
The SEC alleges that Ripple sold $1.3 billion of unregistered securities in the form of its XRP token (XRP). Ripple claims that XRP is not a security and was never given any notice or warning by the SEC.
As Cointelegraph recently reported, the company also claims it spent $200 million defending itself against the lawsuit. Although there is currently no definitive answer to the question of when the trial will end, it is widely believed that the release of the so-called “Hinman documents” could affect the remaining legal proceedings.
The Hinman documents reference internal SEC communications related to a 2018 speech made by William Hinman, a former head of the SEC’s division of corporate finance. During the speech, Hinman commented that cryptocurrencies like Bitcoin (BTC) and ether (ETH) could start out as securities, but could become commodities later, once they are sufficiently decentralized.
At the time, internal SEC memos indicated that the commission was concerned that Hinman’s comments could make it “difficult for the agency to take a different position on Ether in the future.”
Although Himan’s speech was delivered before the SEC’s lawsuit against Ripple and made no direct reference to XRP, some experts say it shows that even the SEC understood there was confusion surrounding the agency’s treatment of cryptocurrencies.
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