Payments firm Ripple has penned a deal with Montengero to launch a CBDC pilot program, according to the country’s central bank.
In a press release, The Central Bank of Montenegro (CBCG) says it has agreed to work with Ripple in developing a “strategy and pilot program” for launching the country’s first CBDC or “national stablecoin.”
Says the central bank,
“Aligning with the CBCG’s core objectives, the digital currency’s introduction is another step forward to digitizing financial services and fostering a world of greater financial accessibility for Montenegro’s citizens.”
CBCG’s Governor says Montenegro is pursuing “up-to-date” national banking trends, and looks forward to collaborating with Ripple on the new CBDC.
“Through the project, the CBCG will work with the Government of Montenegro and Montenegro’s academia to create a practical digital currency or secure currency solution to test the main blockchain technology’s functionality and potential.”
Attorney Jeremy Hogan, XRP supporter and a close follower of the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Ripple, says the XRP Ledger (XRPL) could interact with Ripple’s CBDC program.
“One possibility is that a CBDC could be issued on top of the XRPL as an IOU represented by a specific token. This would allow for the CBDC to take advantage of the XRP Ledger’s fast/efficient settlement times.
Another possibility is that the CBDC’s Central Bank could open a ‘gateway’ on the XRPL that allows users to deposit and withdraw the CBDC. This would allow for the CBDC to be used in conjunction with XRP and other digital assets on the XRP Ledger.”
Montenegro prime minister Dr. Dritan Abazovic confirmed the collaboration with Ripple earlier this year after meeting with Walls and Ripple CEO Brad Garlinghouse.
James Walls, Ripple’s vice president of central bank engagements and CBDCs, says the partnership is part of the company’s push 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 and addressing some of the world’s biggest financial challenges, including financial inclusion…
Ripple has a proven track record of successfully connecting disparate payment systems and championing blockchain’s utility to issue Central Bank Digital Currencies and solve for global payments to hundreds of financial institutions around the world. We are pleased that the CBCG has chosen Ripple to help launch its first digital currency and further address the country’s core financial objectives.”