- Banco Central del Uruguay granted Ripple Partner a license to become a money transfer company and use RippleNet services.
- The central bank’s move has raised optimism that it may have plans to work with Ripple.
Ripple coin – This is going to be the first time in any country that a bank is going to declare a currency exchange and remittance network as a money transfer company. Uruguay’s central bank, Central del Uruguay (BCU), has permitted Latam Software SAS to outsource Ripple services. The central bank said this in a notice, in which it approved the company to be registered as a “money transfer company.”
According to a notice found on BCU’s website, LATAM has met all the requirements necessary to use RippleNet. Therefore, BCU is allowing the company to use the blockchain-based settlement platform for “exchanging information between correspondents.”
“Considering: the Company needs to authorize Ripple Services, Inc. to contract for the use of its RippleNet platform, which is used for the exchange of information between correspondents… The Manager of Financial Regulation authorizes the outsourcing of services to LATAM Software SAS with Ripple Services, Inc.,” the notice said.
Notably, the approval was initially scheduled for March 2022, but was only published by the BCU earlier this month. The document also allows LATAM to appoint Mexican company Mati Technologies as its KYC solutions provider and Amazon’s AWS as its cloud storage service provider.
Meanwhile, XRP community member ‘WratofKahneman’ has pointed out that LATAM’s contract with Ripple may not include On-Demand Liquidity (ODL) adoption. He noted that according to the notice, the company only intends to use Ripple for messaging/data.
Uruguay planning to deepen ties with Ripple?
The approval granted by the BCU to LATAM Software SAS has sparked strong bullish sentiments within the XRP community. According to Rafael Aguiar Menendez, the notice could indicate the government’s plans to work closely with Ripple.
The Uruguayan XRP supporter said that the BCU’s roadmap for 2023-2025 highlights greater adoption of the technology. It also highlights further work on its Central Bank Digital Currency (CBDC), the e-Peso.
The central bank has not confirmed whether it plans to list any blockchain firms. However, speculation is based on Ripple’s track record with CBDCs.
Ripple provides a complete platform for minting, managing, transacting, and destroying CBDCs. This solution allows central banks to create their own CBDCs on a private ledger based on XRP Ledger technology. The South Asian country of Bhutan already uses this solution.
Similarly, Ripple also recently highlighted the benefits of CBDCs. In a Twitter thread, Ripple wrote that CBDCs could enhance national competitiveness, increase the efficiency of payment systems, and foster innovation.
Ripple also estimates that approximately 90% of central banks are working on CBDCs. If Ripple partners with BCUs to work on its own CBDC, this move could propel the price of XRP to new highs.
Currently, XRP is on a bull run alongside the rest of the crypto market. The coin is trading at around $0.39, up 1.64 percent over the past 24 hours and 10.2 percent on the monthly chart.
