Central Bank of Montenegro partners with Ripple to create a digital currency
The Central Bank of Montenegro has partnered with blockchain solution provider Ripple to develop a digital national currency (CBDC)
The cooperation will focus on creating a practical digital currency and exploring the potential of blockchain technology
The Central Bank of Montenegro (Centralna Banka Crne Gore, CBCG) has partnered with blockchain solution provider Ripple to develop a strategy and pilot program for the launch of a national stablecoin (central bank digital currency, CBDC). The collaboration will define the practical application of the digital national currency and develop a system to simulate its circulation, Ripple said in a press release.
CBCG will work with the government and academia in Montenegro to create a practical digital currency, testing the functionality and potential of blockchain technology, said CBCG head Rado Žugić.
He also noted that the program will analyze the benefits and risks that CBDC may pose in terms of electronic payment accessibility, security, efficiency, compliance, and, most importantly, the protection of end-user rights and privacy.
The euro has been the only legal tender in Montenegro since 2002.
Ripple has developed a platform to run CBDC, on which tokens can be issued, managed, burned, and transacted. The solution runs on the XRP Ledger blockchain. The company has previously entered into an agreement to test CBDC with Bhutan and is considering the introduction of the national currency in Palau.
In addition to developments in digital currencies, Ripple offers solutions for cross-border transfers via RippleNet, which allows banks to make near-instant transfers at a minimal cost. In 2021, the company set up money routes between Japan and the Philippines, as well as between Egypt and the UAE; in 2022, a corridor for transactions between Qatar and the Philippines appeared.
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