Montenegro’s Central Bank (CBCG) has signed a deal with blockchain-based payments firm Ripple to launch a national digital currency pilot program, according to a CBCG press release.
The collaboration aims to develop a “strategy and pilot program” for Montenegro’s first Central Bank Digital Currency (CBDC) or “national stablecoin.”
James Walls, Ripple’s VP of Central Bank Engagements and CBDCs, welcomed the partnership, saying that Ripple is pleased to be chosen to help launch Montenegro’s first digital currency and address the country’s core financial objectives.
“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,” Walls said.
CBCG Governor Radoje Zugic highlighted the move towards digital financial services and the need to make financial services accessible to Montenegro’s citizens. He added that the project would test the potential of blockchain technology.
“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,” Zugic said.
Will XRP Be Involved With Ripple’s CBDC Program?
The XRP Ledger (XRPL) may interact with Ripple’s CBDC program, according to XRP supporter and attorney Jeremy Hogan.
He said that one possibility is that a CBDC could be issued on top of the XRPL as an IOU represented by a specific token, allowing for the CBDC to take advantage of the XRP Ledger’s fast and efficient settlement times.
Another option, he added, is for the CBDC’s Central Bank to open a gateway on the XRPL that allows users to deposit and withdraw the CBDC, allowing for the CBDC to be used with XRP and other digital assets on the XRP Ledger.