Blog: Central bank of Urugay has declared Ripple as money transfer … – Crypto News Flash

  • Banco Central del Uruguay grants Ripple partner a license to become a money transfer company and use RippleNet services. 
  • The central bank’s move has raised optimism that it could have plans to work with Ripple. 

Banco Central del Uruguay (BCU), the central bank of Uruguay, has granted LATAM SOFTWARE S.A.S permission to outsource services to Ripple.

The central bank stated this in a notice in which it granted the company approval to become registered as a “money transfer company.”

According to the notice that can be found on the BCU’s website, LATAM had met all the requirements demanded to use RippleNet. Hence, the BCU grants the company permission to use the blockchain-based settlement platform for “the exchange of information between correspondents.”

“Considering: that the requirements demanded to authorize the company to contract Ripple Services, Inc. for the use of its RippleNet platform used for the exchange of information between correspondents… the manager of financial regulation authorize LATAM SOFTWARE S.A.S. the outsourcing of services with Ripple Services, Inc.,” the notice said.

Notably, the approval was first given in March 2022 but was only published earlier this month by the BCU. The document also gives LATAM permission to employ Mexican company Mati Technologies as its KYC solution provider. And employ Amazon’s AWS as its cloud storage services provider.

Meanwhile, XRP community member ‘WrathofKahneman’ has pointed out that LATAM’s contract with Ripple may not include On-Demand Liquidity (ODL) adoption. He notes that the company is looking to use Ripple for only messaging/data per the notice.

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Uruguay planning to have deeper ties with Ripple?

The approval given to LATAM Software S.A.S. by the BCU has sparked a lot of bullish sentiments in the XRP community. According to Rafael Aguiar Menéndez, the notice could be pointing to the government’s plans to work more closely with Ripple.

The Uruguayan XRP supporter noted that the BCU’s roadmap for 2023-2025 highlights greater adoption of technology. It also highlights further work on its Central Bank Digital Currency (CBDC), the e-peso.

The central bank has not confirmed that it plans to enlist any blockchain firms. However, the speculation is based on Ripple’s track record with CBDCs.

Ripple offers a complete platform for minting, managing, transacting, and destroying CBDCs. The solution allows central banks to build their CBDCs on a private ledger that is based upon XRP Ledger technology. South Asian country Bhutan already uses this solution.

Similarly, Ripple also recently highlighted the benefits of CBDCs. Writing in a Twitter thread, Ripple notes that CBDCs can enhance national competitiveness, increase payment system efficiencies, and foster innovation.

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Ripple also estimated that around 90 percent of central banks are working on a CBDC. If Ripple clinches a partnership with the BCU to work on their CBDC, the move could drive the price of XRP to new highs.

At present, XRP is on a bull run along with the rest of the crypto market. The token is trading at around $0.39, up 1.64 percent in the last 24 hours, and 10.2 percent in the monthly chart.

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