Uruguay Registers Ripple Partner As Money Transfer Company

Within the XRP community, a document of the Central Bank of Uruguay, wherein Ripple is mentioned seven times, is currently causing quite a stir. The document dates back to March 7, 2022, but is alleged to have been published lower than per week ago on the web site of the Central Bank of Uruguay (BCU), where it could actually currently still be found.

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

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

In consequence 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 knowledge required by the regulations in force, for the needs of the requested registration as a money transfer company.

That, likewise, it has provided the knowledge 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 necessities for the provider of the technological platform used for the client registration process (KYC).

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

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

Moreover, 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?

Presently, it is barely possible to take a position on the implications. Nevertheless, renowned XRP community member Wrathof Kahnemann explained; “Poking a bit further, it seems they might intend to contract with Ripple for messaging/data only, not ODL.”

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

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

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

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

The agenda to be pursued over the following two years includes milestones equivalent to completing the rollout of comprehensive 24/7 clearing systems and promoting the implementation of a quick payment system consistent 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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