Crytocurrency

The new administration thwarts Ripple’s ambition to tokenize Colombian property.

The agreement between the Colombian government and Ripple Labs to place land titles on the blockchain appears to have halted as the new administration “deprioritized” the initiative.

The initiative was first launched by the departing government’s Ministry of Information Technology and Communications two weeks before the inauguration of the newly elected President Gustavo Petro.

The temporary head of the National Lands Agency, Juan Manuel Noruega Martnez, told Forbes on August 30 that the project is not one of the agency’s strategic goals for 2022.

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“This is not one of the PETI [Strategic Plan for Information Technologies] initiatives.”
The change is rather unexpected given that Colombia’s new president is believed to be favourable toward cryptocurrencies and has tweeted his support for them in the past.

The partnership between Colombia’s National Land Agency, Ripple, and Peersyss Technology aimed to tokenize real estate on the blockchain to make it easier to search for properties, make property title management more open and less expensive, and speed up the process of getting financing and making payments.

The 2016 peace deal that formally ended the Colombian civil war included a requirement to establish the property titles for small and medium-sized rural properties. According to a 2013 survey, barely one in two small farmers have official land ownership rights.

Due to the lack of paperwork, farmers are less likely to invest in land, and they can’t use land as security when they need money. A blockchain-based real estate ledger was made to solve this problem by giving landowners peace of mind and a reason to invest in their land.

According to a tweet from Peersyst Technology, the register became live on July 1 after being in development for a year.

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On July 30, Peersyst announced that the first deed has been posted to the blockchain, with the land certificate appearing identical to any other with the addition of a QR code that verifies the certificate on the blockchain. Anyone may use the QR code to locate the location of the property deed on the XRP blockchain.

There have been no new developments concerning the collaborative project. Asian Trade has reached out to Ripple Labs for comment on any developments but has not yet received a response.

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