In the XRP community, a document from the Central Bank of Uruguay, in which Ripple is mentioned seven times, is currently causing an uproar. The document dates from March 7, 2022, but it will be published less than a week ago on the website of the Central Bank of Uruguay (BCU), which can still be found today.
First, XRP community member Rafael Aguiar Menéndez from Uruguay reported the news, which was later shared by Edo Farina, CEO of Alpha Lions Academy.
Ripple’s detailed role is still unclear. However, the document said that the Central Bank registered Ripple’s partner LATAM SOFTWARE SAS as a “money transfer company” and granted it the right to outsource special services to Ripple.
As a result of the review by the Superintendence of Financial Services of the BCU, signed by Patricia Fabiana Tudisco Basignani, stated:
That LATAM SOFTWARE SAS has provided all the information required by the applicable regulations, for the purpose of the requested registration as a money transfer company.
That, also, has provided the information and documentation required by the applicable regulations on service outsourcing, including the updated Operational Continuity Plan, the contract signed with Mati Technologies, Inc. and Ripple Services, Inc. and the AWS user contract model. from Amazon Web Services, Inc.
The document says that the Mexican company Mati Technologies meets the requirements for the provider of the technology platform used for the customer registration (KYC) process.
BCU authorizes LATAM SOFTWARE SAS to use the RippleNet platform based on a contract with Ripple Services Inc. Its purpose is described as an exchange of information between correspondents:
The conditions for authorizing the company to contract Ripple Services, Inc. to use the RippleNet platform used to exchange information between correspondents, and subcontracting with the Amazon Web Services (AWS) provider for hosting information in the cloud on a server in London, England, according to the terms of the Ripple Master Hosted Services Agreement signed on March 12 2021, met.
Furthermore, the document also states that BCU authorized LATAM SOFTWARE SAS to outsource its 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 point, one can only speculate about the implications. However, a prominent member of the XRP community is Wrathof Kahnemann explained; “Poking a little more, it seems they want to contract with Ripple for messaging/data only, not ODL.”
Menéndez added when asked whether the Bank of Uruguay uses traditional settlement rail or On-Demand Liquidity technology based on XRP, “As described above, it appears that BCU has granted a license to use Ripple services to LATAM Software SA, I have written to the president and vice president of BCU on LinkedIn but have yet to receive a response.
Notably, Uruguay was the first country to launch a large-scale CBDC (e-peso) pilot program in November 2017 but used a proprietary payment system instead of blockchain. Despite the successful pilot, the country has yet to announce concrete plans for the launch of CBDC.
In this regard, Menéndez shared an article on the road map for the payment system for the period 2023-2025.
This other interesting data, the @BancoCentral_Uy roadmap 2023 – 2025, he announced cbdchttps://t.co/op0tsuwgbw
Just to be clear I live in uruguay, did a lot of research involving ripple, xrp & all ISO 20022 standards and comply– Rafael Aguiar Menéndez (@ch4rbo) January 14, 2023
According to the November 2022 presentation, the Central Bank of Uruguay “aspires to create the right conditions for the introduction of new products or technologies that contribute to the innovative development of the national payment system, increase its efficiency and accessibility, and ensure its operational continuity.”
The agenda for the next two years includes milestones such as completing the launch of a comprehensive 24/7 clearing system and promoting the implementation of a fast payment system in line with “international best practices.”
At press time, the price of XRP stood at $0.3857, up 0.4% over the past 24 hours.
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