Altcoins

Central Bank Of Uruguay Registers Ripple Partner As A Money Transfer Company

In the XRP community, a document of the Central Bank of Uruguay, in which Ripple is mentioned seven times, is currently causing quite a stir. The document dates back to March 7, 2022, but is said to have been published less than a week ago on the website of the Central Bank of Uruguay (BCU), where it can currently still be found.

First, the XRP community member Rafael Aguiar Menéndez from Uruguay reported the news, which was spread a little later also by Edo Farina, CEO of Alpha Lions Academy.

The detailed role of Ripple is still not fully unclear. However, the document reveals that the Central Bank registered Ripple partner LATAM SOFTWARE S.A.S. as a “money transfer company” and granted it the right to outsource services specifically to Ripple.

As a result of a review by the Superintendence of Financial Services of the BCU, signed by Patricia Fabiana Tudisco Basignani, it states:

That LATAM SOFTWARE S.A.S. has provided all the information required by the regulations in force, for the purposes of the requested registration as a money transfer company.

That, likewise, it has provided the information and documentation required by the regulations in force regarding outsourcing of services, including the updated Operational Continuity Plan, the contracts signed with Mati Technologies, Inc. and Ripple Services, Inc. and the AWS user contract model of Amazon Web Services, Inc.

The document said the Mexican company Mati Technologies meets the requirements for the provider of the technological platform used for the customer registration process (KYC).

The BCU authorizes LATAM SOFTWARE S.A.S to use the RippleNet platform based on a contract with Ripple Services Inc. The purpose is described as the exchange of information between correspondents:

That the requirements to authorize the company to contract Ripple Services, Inc. for the use of its RippleNet platform used for the exchange of information between correspondents, and its subcontracting with the provider Amazon Web Services (AWS) for the hosting of the information in the cloud on servers in London, England, under the terms of the Ripple Master Hosted Services Agreement signed on March 12, 2021, are met.

Furthermore, the document also states that BCU authorized LATAM SOFTWARE S.A.S. to outsource services to Ripple Services, Inc. in accordance with 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 on the implications. However, renowned XRP community member Wrathof Kahnemann explained; “Poking a little further, it seems they would intend to contract with Ripple for messaging/data only, not ODL.”

Menéndez added when asked if the Bank of Uruguay is using the traditional settlement rails or the XRP-based On-Demand Liquidity technology, “As explained above, it looks like the BCU has granted a license to use the Ripple services to LATAM Software S.A., I have written to the president and vice president of the BCU in LinkedIn but have not received a response yet.”

Notably, Uruguay was the first country to conduct a large-scale CBDC (e-peso) pilot program in November 2017 but used a proprietary payment system instead of a blockchain. Despite the successful pilot, the country has yet to announce any concrete plans for a CBDC launch.

In this regard, Menéndez shared an article on the roadmap for the payments system for the period 2023-2025.

According to a November 2022 presentation, the Central Bank of Uruguay “intends to take the lead in creating appropriate conditions for the introduction of new products or technologies that contribute to the innovative development of the national payments system, improve its efficiency and accessibility, and ensure its operational continuity.”

The agenda to be pursued over the next two years includes milestones such as completing the rollout of comprehensive 24/7 clearing systems and promoting the implementation of a fast payment system in line with “international best practices.”

At press time, the XRP price stood at $0.3857, up 0.4% over the past 24 hours.

XRP price, 1-day chart | Source: XRPUSD on TradingView.com

Featured image from vjkombajn | Pixabay, Chart from TradingView.com

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