On April 11, the Central Bank of Montenegro (CBCG) announced that it had partnered with Ripple to formulate a plan and carry out a trial program for a Montenegrin digital currency in the form of either a Central Bank Digital Currency (CBDC) or a stablecoin.
The introduction of digital currency is a move towards achieving the core objectives of the CBCG and promoting financial accessibility for the citizens of Montenegro by digitizing financial services.
According to Radoje Žugić, the Governor of CBCG, the bank is dedicated to staying current with the latest banking trends and ensuring a streamlined financial system. Žugić expressed the CBCG’s interest in partnering with Ripple on a pilot initiative to create a CBDC or stablecoin.
The project will entail cooperation between the CBCG, the Montenegrin government, and Montenegrin academic institutions. Its objective is to produce a practical digital or secure currency solution that will examine the capabilities and potential of blockchain technology.
Žugić noted that analyses would be conducted to examine the potential benefits and drawbacks of CBDCs or national stablecoins concerning accessibility, security, efficiency, regulatory compliance, and protection of end-users rights and privacy in electronic payment systems.
James Wallis, Ripple’s Vice President of Central Bank Engagements & CBDCs, stated:
“We are pleased that the CBCG has chosen Ripple to help launch its first digital currency and further address the country’s core financial objectives.”
Wallis noted that Ripple has a successful track record of connecting diverse payment systems, advocating for the practicality of blockchain technology in developing CBDC, and addressing global payment challenges for many financial institutions around the world.
Furthermore, Wallis indicated that the Central Bank of Montenegro is adopting the most recent advancements in digital transformation to overcome significant financial obstacles, including financial inclusion.
For months, Ripple has been promoting its growth in the Central Bank Digital Currency sector. According to Wallis, the company has several CBDC initiatives underway worldwide and is engaged in conversations with many central banks around the globe.
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