In the XRP community, a document from the Central Bank of Uruguay, in which Ripple was mentioned seven times, caused quite a stir. The document is dated March 7, 2022, but it could have been published less than a week ago on the website of the Central Bank of Uruguay (BCU), where it can still be found.
First, XRP community member Rafael Aguiar Menendez from Uruguay reported the news, which was also shared a little later by Edo Farina, CEO of Alpha Lions Academy.
The detailed role of Ripple is still not entirely clear. However, the document It reveals that the central bank has registered Ripple partner LATAM SOFTWARE SAS as a “money transfer company” and has given it the right to specifically outsource Ripple services.
As a result of the opinion of the BCU Financial Services Supervisor, signed by Patrícia Fabiana Tudisco Baignani, it states:
LATAM SOFTWARE SAS has provided all the information required by the applicable regulations, for the purposes of the required registration as a money transfer company.
which, likewise, made available the information and documentation required by applicable regulations in connection with the outsourcing of the service, including an updated Operation Continuity Plan, contracts signed with Mati Technologies, Inc. and Ripple Services, Inc. and the sample AWS User Agreement from Amazon Web Services, Inc.
The document states that the Mexican company Mati Technologies fulfills the requirements of the supplier of the technology platform used in the customer registration (KYC) process.
BCU authorizes LATAM SOFTWARE SAS to use the RippleNet platform based on an agreement with Ripple Services Inc. The purpose is described as the exchange of information between correspondents:
That the requirements to authorize the Company to contract with Ripple Services, Inc. To use the RippleNet platform used to exchange information between reporters, and to subcontract with a provider Amazon Web Services (AWS) to host the information in the cloud on servers in London, England, under the terms of the Ripple Master Hosted Commitment Services Agreement signed March 12, 2021.
Further, the document also states that BCU has authorized LATAM SOFTWARE SAS to outsource Ripple Services, Inc. According to the Ripple Master Hosted Services Agreement signed on “03.12.2021.”
What are the implications for Ripple?
At this time, it is only possible to speculate about the implications. However, a well-known member of the XRP community, Rathof Kahneman, explained ; “Going forward, it appears they intend to lease Ripple for messaging/data only, not ODL.”
When asked if the Uruguayan bank is using traditional settlement bars or XRP-based on-demand liquidity technology, Menendez added: “As indicated above, BCU appears to have granted a license to use Ripple’s services to LATAM Software SA. I have written to BCU’s President and Vice President at LinkedIn, but has not yet received a response.
Notably, Uruguay was the first country to implement a large-scale CBDC (e-peso) pilot program in November 2017, but it used a proprietary payment system instead of a blockchain. Despite the successful experiment, the country has not yet announced any concrete plans to launch a CBDC.
Another interesting data is this @employee Roadmap 2023 – 2025, their announcement on cbdch
Just to be clear, I live in Uruguay, do a lot of research involving and compliant with Ripple, xrp and all ISO 20022 standards
– Rafael Aguiar Menendez (@ch4rbo) January 14, 2023
According to a presentation in November 2022, the Central Bank of Uruguay intends to “take the lead in creating the conditions for the introduction of new products or technologies that contribute to the innovative development of the national payment system, improving its efficiency, accessibility and guaranteeing its operational continuity.”
The agenda to be monitored in the next two years includes milestones such as completing the implementation of comprehensive 24/7 compensation schemes and promoting the implementation of an express payment system in line with “international best practices”.
At press time, the price of XRP (COIN: XRPUST) was at $0.38854, up 1.02% over the past 24 hours.
With information from Bitcoinist