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.
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.