2023-04-11 12:06:36
Ripple Partners with Montenegro to Develop National Digital Currency Strategy
Ripple and the Central Bank of Montenegro have signed an agreement to collaborate on a strategy and pilot program for a Montenegrin digital currency, in the form of either a central bank digital currency (CBDC) or a stablecoin. Montenegro has used the euro as its national currency since 2002, despite not being part of the Eurozone.
James Wallis, RippleX's Vice President for Central Bank Engagements and CBDCs, shared with Cointelegraph that more details regarding the project will be unveiled later this year. The initiative will undergo several stages, including determining the practical applications of a national digital currency or stablecoin.
Wallis explained that a sandbox stage is in the works, which will allow the future digital currency to circulate under controlled conditions. He added, "We'll work closely with the Central Bank to determine use cases, key success factors, and timelines." The project is set to commence this month.
Radoje Žugić, Governor of the Central Bank of Montenegro, stated that the central bank would collaborate with the government and academic community to "analyze the advantages and risks that CBDCs or national stablecoins could pose concerning the availability of electronic means of payment, security, efficiency, compliance with regulations, and most importantly the protection of end users' rights and privacy." Žugić emphasized the central bank's commitment to following modern national banking trends and maintaining an efficient financial system.
Montenegrin Prime Minister Dritan Abazovic first announced the impending partnership between Ripple and the Montenegrin Central Bank during the World Economic Forum Davos in January.
Ripple has been actively expanding its presence in the CBDC space, with Wallis revealing that the company "has multiple CBDC projects ongoing around the world and is in dialogue with dozens of central banks globally."
#Ripple #CBDC #Stablecoin #DigitalCurrency #Blockchain
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