The Central Bank of Montenegro (CBCG), a small-scale European country, plans to develop a central bank digital currency (CBDC) pilot with blockchain provider altcoin Ripple.
Montenegro Central Bank to Develop CBDC Pilot with Altcoin Ripple
The pilot will allow the central bank to identify the practical application of a national stablecoin and develop a design to simulate its circulation.
As part of the pilot project, the central bank will determine the practical application of a national stablecoin and develop a design to simulate its circulation, Ripple announced on Tuesday.
Radoje Zugic, President of CBCG, said in a statement that the project will "analyze the advantages and risks that CBDCs or national stablecoins may pose in relation to the availability, security, efficiency, regulatory compliance and, most importantly, protection of the rights and privacy of end users" of electronic payment instruments.
More than 100 countries are exploring the development of a CBDC – a digitized form of central bank money for use by the public – and some are in the implementation phase.
The partnership between Montenegro's central bank and Ripple is expected to result in a highly secure and efficient payment system that will bring significant benefits to both consumers and businesses.
The central bank is also exploring the potential of integrating CBDC into the existing financial system, including banks, payment processors and other financial institutions.
*Not investment advice.