Ripple and Montenegro’s Central Bank Team Up for Blockchain-Based CBDC
Ripple, a company specializing in payments, has collaborated with the Central Bank of Montenegro (CBCG) to create a strategy and pilot program for the introduction of the country's inaugural CBDC.
The CBCG aims to digitize financial services and improve financial accessibility for Montenegrin citizens, and introducing a digital currency aligns with this objective.
The partnership between Ripple and the CBCG will involve collaborating with the Montenegrin government and academia to create a practical digital currency that will test the potential of blockchain technology.
According to Jeremy Hogan, a lawyer who supports XRP and monitors Ripple’s legal battle with the US Securities and Exchange Commission (SEC), the XRP Ledger (XRPL) may have a part to play in the CBDC program.
One potential scenario is the issuance of a CBDC on the XRPL as an IOU token, while another is for the Central Bank of Montenegro to establish a “gateway” on the XRPL that enables users to deposit and withdraw the digital currency.
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Montenegro’s Prime Minister, Dr. Dritan Abazovic, has confirmed the collaboration with Ripple, which was announced after a meeting with James Walls, Ripple’s Vice President of Central Bank Engagements and CBDCs, and Ripple CEO Brad Garlinghouse
U saradnji sa @Ripple i Centralnom bankom pokrenuli smo pilot projekat izgradnje prve digitalne valute ili stablecoin-a za Crnu Goru.
— Dr Dritan Abazovic (@DritanAbazovic) January 18, 2023
Walls stated that collaborating with Montenegro is a step towards Ripple’s goal of digitizing global payments. He commended the CBCG’s decision to introduce its first digital currency, recognizing it as a significant advancement in confronting some of the most significant financial obstacles, including financial inclusion.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
