Montenegro partners Ripple for CBDC Trial
Ripple, a company that makes crypto and blockchain solutions, is working with the Central Bank of Montenegro (CBCG) to test the country’s planned central bank digital currency (CBDC).
By doing this, Montenegro joins the list of more than 100 countries that are testing a CBDC for retail or bulk use. UAE, Australia, Japan, Russia, and India are some of the most recent countries to launch and test CBDC showcase projects.
The CBCG says that the plan to create a digital currency is in line with its main goals and that the introduction of a CBDC will help digitise the country’s financial services and make it easier for its citizens to get access to money as Montenegro works to keep a “efficient financial system.”
The central bank of Montenegro will work with the government and academics to create blockchain technology and figure out how it works and what it can do.
Governor of the CBCG Radoje Ugi says that the project will “evaluate the benefits and risks that CBDCs or national stablecoins could present in terms of electronic means of payment availability, security, efficiency, regulatory compliance, and, most importantly, the protection of end users’ rights and privacy.”
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The project will go through several stages, including figuring out how a digital money can be used in real life and designing it, modeling its usage, and testing its use in a controlled setting. Bhutan’s central bank worked with Ripple in September 2021 to test its own CBDC.