Ripple Announces New CBDC Deal With Montenegro• April 13, 2023 6:32 pm • Comments
It looks like Ripple is continuing to be more and more involved in the CBDC space as it was just revealed that the company has completed a deal with the country of Montenegro to launch a CBDC pilot program.
This is not the first time that the company has been involved with a CBDC project, but this is one of the first public announcements that the company has had with a government to do a pilot test.
In this deal, Ripple will essentially assist the Central Bank of Montenegro develop a CBDC that would be used as a national stable coin.
The partnership is expected within the crypto world given that Ripple is the only crypto company that is able to provide a comprehensive CBDC platform and currently has no major competitors in the space.
Montenegro seems to be one of the first countries and XRP investors believe that this is just the beginning of the trend.
— Antony Welfare (@AntonyWelfare) April 11, 2023
Says the central bank,
“Aligning with the CBCG’s core objectives, the digital currency’s introduction is another step forward to digitizing financial services and fostering a world of greater financial accessibility for Montenegro’s citizens.”
CBCG’s Governor says Montenegro is pursuing “up-to-date” national banking trends, and looks forward to collaborating with Ripple on the new CBDC.
“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.”
Attorney Jeremy Hogan, XRP supporter and a close follower of the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Ripple, says the XRP Ledger (XRPL) could interact with Ripple’s CBDC program.
Investors are also speculating on how exactly the CBDC would utilize the XRP ledger and there have been multiple theories that have already been presented.
The first possibility is that the CBDC could be issued on top of the XRP ledger as an IOU which could be represented by XRP.
Another way is that the central bank could be using the XRP ledger as a gateway in order to deposit and withdraw CBDCs.
Regardless of the method, it seems that this could increase transactions and usage of Ripple’s native token XRP which means that this is very bullish news for the digital asset.
As more and more central banks are moving to implement CBDCs, Ripple stands in an advantageous position to ride the growth of this industry.
— Mr. Huber🔥🦅🔥 (@Leerzeit) April 11, 2023
The central bank will identify practical applications of a CBDC and come up with a design to simulate its circulation, Ripple announced on Tuesday.
The project will “analyze 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,” CBCG Governor Radoje Zugic said in the statement.
Montenegro is not a member of the European Union, but it has adopted the euro without joining the eurozone. The European Central Bank and EU are set to decide whether to introduce a digital euro later this year.
More than 100 countries are exploring the possibility of issuing a CBDC, which is a digitized form of central bank money for use by the public.
— Bitcoin News (@BTCTN) April 13, 2023
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