Central Bank of Montenegro confirms Ripple as its CBDC Pilot partner

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Key Takeaways:

  • The Central Bank of Montenegro, or CBCG, intends to work with blockchain service provider Ripple to create a trial program for a central bank digital currency.
  • According to the declaration, the digital currency for Montenegro may be either a central bank digital currency or a national stablecoin. (CBDC).

Montenegro has enlisted Ripple‘s help in developing a novel pilot project to build a digital currency. The project, according to James Wallis, vice president of ripple for central bank engagements and CBDCs, will go through a number of stages, including identifying real-world uses for the digital currency and a sandbox stage where it will be put into circulation under controlled circumstances.

The project will investigate how a digital currency or national stablecoin might be used in practice as well as how to mimic its circulation and use in a controlled environment.

Radoje Ugi, governor of the CBCG, says: “We are eager to work with Ripple on the pilot project for developing CBDC or stablecoin.

Radoje Ugi, the governor of the Central Bank of Montenegro, stated that the institution would collaborate with government agencies and academic institutions to analyse the advantages and hazards that CBDCs or national stablecoins might entail in relation to the accessibility of electronic means of payment, safety, effectiveness, adherence to regulations, and most significantly, the safeguarding of end users’ rights and privacy.

Anthony Welfare, a CBDC adviser for Ripple, announced a cooperation between Ripple and the Central Bank of Montenegro on Twitter. According to Welfare, the collaboration will involve the two parties working on a test project to create digital money for Montenegro.

For months, Ripple has bragged about its growth in the CBDC industry. According to Wallis, the business “has several CBDC projects ongoing globally and is in discussion with dozens of central banks globally.”

The partnership will go through a number of stages, including study into the likelihood that CBDC will be used in Montenegro and potential avenues for its legal distribution.

The impending agreement between Ripple and the Montenegrin Central Bank was initially announced in a tweet from the World Economic Forum in Davos in January by Montenegrin Prime Minister Dritan Abazovic.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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