According to the country’s central bank, Ripple has agreed to begin a CBDC pilot program with Montengero. The Central Bank of Montenegro (CBCG) announced in a press release that it has agreed to collaborate with Ripple on developing a “strategy and pilot program” for introducing the country’s first CBDC or “national stablecoin.”
According to the central bank, “In line with the CBCG’s core objectives, the introduction of digital currency is another step toward digitizing financial services and fostering a world of greater financial accessibility for Montenegrins.”
Montenegro is pursuing “up-to-date” national banking trends, according to the Governor of the CBCG, and looks forward to working with Ripple on the new CBDC. “Through the project, the CBCG will collaborate with the Government of Montenegro and Montenegro’s academia to develop a practical digital currency or secure currency solution to test the functionality and potential of the main blockchain technology.”
Attorney Jeremy Hogan, an XRP advocate and close watcher of the SEC’s litigation against Ripple, believes the XRP Ledger (XRPL) could interact with Ripple’s CBDC program.
“A CBDC could be issued on top of the XRPL as an IOU represented by a specific token, as one possibility.” This would allow the CBDC to benefit from the XRP Ledger’s quick/efficient settlement times.
Another option is that the CBDC’s Central Bank may establish a ‘gateway’ on the XRPL that will allow users to deposit and withdraw CBDC. This would allow CBDC to be used alongside XRP and other digital assets on the XRP Ledger.”
Dr. Dritan Abazovic, the Prime Minister of Montenegro, announced the engagement with Ripple earlier this year after meeting with Walls and Ripple CEO Brad Garlinghouse.
Ripple’s vice president of central bank engagements and CBDCs, James Walls, says the collaboration is part of the company’s aim to bring global payments into the digital era.
The Central Bank of Montenegro is bringing the next level of digital transformation to its financial infrastructure, solving some of the world’s major financial difficulties, including financial inclusion, and addressing some of the world’s biggest financial challenges, including financial inclusion.
Ripple has a track record of effectively linking different payment systems and championing blockchain’s potential to issue Central Bank Digital Currencies and solve global payments for hundreds of financial institutions worldwide. We are delighted that the CBCG has chosen Ripple to assist in the creation of its first digital currency and in furthering the country’s primary financial objectives.”
