The Central Bank of Montenegro (CBCG) has teamed up with Ripple, a real-time payment protocol, to establish a plan to introduce the country’s Central Bank Digital Currency (CBDC) pilot. According to a press release, this collaboration is in line with the central bank’s goals of further digitizing the financial services industry in Montenegro, offering its citizens access to an improved digital economy.The value of XRP has also risen above $0.5, alongside the general growth of the crypto market today.
Montenegro and Ripple to Launch CBDC
CBCG’s decision is in alignment with that of the European Central Bank, which is developing the idea of a digital euro for secure and safe electronic payments. Montenegro’s central bank is also seeking to join Europe and a list of over 100 countries exploring various applications for a CBDC, including efficient cross-border payments, current monetary policies, broader financial inclusion, and improved payment security.
Regarding the partnership, CBCG Governor, Radoje Žugić stated:
“As a central bank committed to following up-to-date national banking trends, the CBCG is actively ensuring it maintains an efficient financial system. We look forward to collaborating with Ripple on the pilot project for creating CBDC or stablecoin.”
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Furthermore, Žugić added that the central bank would collaborate with Montenegro’s government and academic institutions to examine the blockchain’s potential applications and functionality for this project. The central bank’s governor also announced that CBCG would evaluate the benefits and drawbacks of utilizing CBDCs, especially regarding users’ rights and privacy.
Additionally, the bank revealed that the CBDC project with Ripple would go through various stages. The team will determine the practical applications of a national stablecoin and build a design to guarantee its smooth circulation and regulation under controlled conditions.
Ripple’s Vice President of Central Bank Engagements & CBDCs, James Wallis, commented on the partnership by saying:
“Ripple has a successful track record of connecting diverse payment systems and promoting blockchain’s capabilities to release Central Bank Digital Currencies, thereby resolving global payments to multiple financial organizations worldwide. We are thrilled that the CBCG has chosen Ripple to assist in launching its first digital currency and help reach the country’s primary financial goals.”