The Central Bank of Montenegro collaborates with Ripple to create CBDC

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Key takeaways:

  • The central bank of Montenegro will collaborate with Ripple to develop a central bank digital currency, according to Prime Minister Dritran Abazonic (CBDC).
  • Given the fact that Montenegro has no national currency, the characteristics of the new digital currency are yet unknown.

The central bank of Montenegro will team up with Ripple to develop a central bank digital currency, according to Prime Minister Dritran Abazonic (CBDC). The prime minister of the nation allegedly had meetings with vice president James Wallis and CEO Brad Garlinghouse of Ripple while attending the World Economic Forum in Davos, Switzerland.

The nation has been using the Euro since 2002 and does not currently have a national currency of its own. This leads to an intriguing development for the nation’s own stablecoin. The only time the prime minister has used Twitter thus far is to confirm the joint initiative to start a CBDC pilot project.

Vice President of central bank engagements and CBDCs at Ripple is Wallis. Evidently, Abazovi was thinking along the lines of a central bank digital currency (CBDC).

As a result, the largest unknown for the Central Bank and the expansion of Ripple’s CBDC is the lack of a national currency in Montenegro.

But the Montenegrin government has long sought to have a foothold in the Bitcoin industry. After participating in a panel in Montenegro in April, Vitalik Buterin, the co-founder of Ethereum, received citizenship.

It took until January 18 for the news that Ripple and the Central Bank of Montenegro were creating a CBDC to reach audiences abroad. With “many pilots in process,” Ripple advisers have highlighted recent developments in CBDC development. The business is also a founder member of the Digital Dollar Project, which in February of last year joined the Digital Euro Association.

Since testing a private version of the XRP Ledger in March 2021, which gave central banks a platform to safely create CBDCx, Ripple has increased its contribution to the creation of central bank digital currencies.

To help the nation of Bhutan increase cross-border payments, Ripple Labs teamed up with the Royal Monetary Authority of Bhutan in September 2021 to pilot test the development of a digital ngultrum.

Banking institutions and regulators all across the world have realised the importance of embracing the web 3 sector to meet their own needs.

Hong Kong is the newest entrant in the web 3 race. Legislators in Hong Kong have proposed that the administration establish a decentralised finance (DeFi) network-connected stablecoin version of the digital Hong Kong dollar.

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Aadrika Sharma
Aadrika Sharma

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

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