Montenegro Partners With Ripple To Develop CBDC

January 31, 2023 10:47 am Comments

It has been announced that the nation of Montenegro will now be partnering with Ripple in order to develop a central bank digital currency (CBDC).

This is a tremendous milestone as it is one of the first times that a nation has decided to partner up with Ripple to launch a stable coin.

The fact that Ripple was chosen indicates that the company is leading the CBDC space and it has also been revealed that it will be working with the Central Bank in order to launch this pilot project.

Ripple CEO Brad Garlinghouse had met with the Montenegro Prime Minister to discuss this pilot program and it is expected that many other countries may follow the country’s steps if the project is successful.

Such experiments are especially important for smaller countries like Montenegro as it will potentially provide the nation with long-term growth in the financial sector that small countries usually miss out on.

Bitcoinist.com reports:

According to Boskovic, one of the factors behind the success of the aforementioned countries was the creation of a favorable political framework, which was necessary. And cooperation with Ripple could be another step in bringing knowledge and technology into the country.

As Bitcoinist reported, Central Bank Digital Currencies are a big focus for Ripple in 2023. The company recently hosted a webinar with the Digital Pound Foundation called β€œWhat Is A Digital Pound Really Useful For?” James Wallis delivered the keynote.

Brooks Entwistle, SVP and MD at Ripple, also revealed that the company does not intend to implement a solution for every central bank in the world, but is taking a targeted approach – with smaller central banks around the globe showing particular interest.

Palau and the Kingdom of Bhutan recently made their partnerships with Ripple public.

The exact role that the XRP ledger will play in this pilot program is still unknown, but speculators can be certain that Ripple will have a significant role in the development.

This latest news from Montenegro is part of a new trend that shows that the majority of central banks in the world are looking at the creation of CBDCs.

Industry experts believe that most will be aiming to conduct similar pilot programs by the end of this decade and Ripple is one of the only few crypto projects that have built a CBDC platform.

As a result, the company is currently the industry lead that may be able to take advantage of this shift to move from fiat to digitized currencies.

The price of XRP has not yet reacted to this news, but has been in an uptrend as the overall crypto markets experience a recovery.

Cryptonomist concludes:

A report by the Bank of International Settlement (BIS), showed that about 80% of banks around the world are planning to create their own digital currency.

Among the various projects, one of the most ambitious is that of the Japanese Central Bank (BoJ), which has already announced its plan for experimentation, which will begin this spring and will involve consumers and private sector companies.

Also worth mentioning is the already initiated project of Turkey, which in early January carried out the first tests of its Digital Lira.
The data show us that countries with a developing economy are the most likely to start projects quickly, while European and Central American countries seem to be going more cautiously.

The reasons why are clear: a digital currency would promote the inclusion of a large part of the population in the financial world. Furthermore, cash is slowly disappearing and digital payments are going through private systems, a digital currency would make this transition obsolete.

Join the conversation!

We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.