Montenegro’s central bank partners Ripple for CBDC pilot
The Central Bank of Montenegro (CBCG) is partnering up with crypto and blockchain solutions provider Ripple to pilot the country’s proposed central bank digital currency (CBDC).
Montenegro’s central bank taps Ripple for CBDC pilot
The move means Montenegro becomes the latest to join a growing list of more than 100 countries piloting a CBDC for either retail or wholesale use cases. Recent countries announcing and testing CBDC pilots include the UAE, Australia, Japan, Russia and India, among others.
The CBCG says the push to develop a digital currency aligns with its core objectives and that the introduction of a CBDC will help digitise the country’s financial services and foster increased financial inclusion for its citizens as Montenegro looks to maintain “an efficient financial system”.
For the project, the central bank will involve the Montenegro government and the country’s academia to create and test the functionality and potential of blockchain technology.
CBCG governor Radoje Žugić adds that the project will also “analyse the advantages and risks that CBDCs or national stablecoins could pose concerning electronic means of payment availability, security, efficiency, compliance with regulations, and most importantly, the protection of end users’ rights and privacy”.
The project will undergo a number of stages – from identifying the practical application of a digital currency and its design to the simulation of its circulation and testing its use under controlled conditions.
In September 2021, Bhutan’s central bank also partnered up with Ripple to pilot its own CBDC.
