Key takeaways:
- By investigating methods to digitize the regional economy with the NBG, a prominent crypto company, Ripple is strengthening its relationship with the Republic of Georgia.
- According to the NBG’s official statement, the main goal of the conversation was to find possible ways to collaborate to digitalize the Georgian economy.
By investigating methods to digitize the regional economy with the National Bank of Georgia (NBG), prominent crypto company Ripple is strengthening its relationship with the Republic of Georgia.
In an effort to strengthen collaboration in financial technology and digitalization, James Wallis, the CEO of Ripple, met with Natia Turnava, the acting governor of the NBG, and Varlam Ebanoidze, the head of the bank’s financial and supervisory technology development division.
On June 8, the Georgian Central Bank formally announced the meeting via a LinkedIn post. During the meeting, Wallis, who works for Ripple as vice president of central bank engagements, presented Alistair Brown, a representative of Ripple’s partner EPAM Systems, to the Georgian officials. Wallis stated:
“It was an honor to be back in Tbilisi and to introduce Alistair Brown from our partner EPAM Systems to NBG Acting Governor Natia Turnava,”
Digital platform engineering, digital product design, and software engineering services are the areas of expertise for EPAM, which has its headquarters in Newtown, Pennsylvania. The abbreviation for “EPAM” stands for “Effective Programming for America.”
According to the NBG’s official statement, the main goal of the conversation was to find possible ways to collaborate to digitalize the Georgian economy.
The NBG and Ripple had previously partnered on a trial CBDC project known as the digital lari, with the latter serving as the technological partner for the former. This new agreement expands on that relationship.
In September 2023, the NBG revealed its intentions to further CBDC research and sent an invitation to nine companies, including Ripple Labs, to join the digital lari project. The financial authorities then designated Ripple Labs as the official technical partner for creating virtual currency lari.
The central banks of other countries collaborate with Ripple on the development of CBDCs and associated integrations, not just Georgia. Apart from Georgia, Ripple Labs has participated in CBDC trials in countries including Bhutan, Colombia, Palau, Montenegro, and other places.
In a 23-page white paper published towards the end of 2023, Ripple reaffirmed its open support for the establishment of CBDCs worldwide. The firm stated:
“CBDCs are needed to support the most significant positive impacts of asset tokenization, an increasingly targeted mechanism for transforming tangible assets into digital tokens stored on the blockchain,”
While businesses like Ripple have been backing the creation of the CBDC, other detractors are worried about possible negative effects like privacy concerns and government monitoring.
