The Central Bank of Montenegro (CBCG) has partnered with Ripple, a blockchain solutions provider, to develop a strategy and pilot program for launching Montenegro’s first digital currency in the form of a Central Bank Digital Currency (CBDC) or national stablecoin.
As of today, over a hundred countries are exploring and developing a CBDC for various use cases, including modernizing monetary policy, improving payment security, increasing cross-border payments efficiency, and widening financial inclusion.
The digital currency’s introduction is another step towards digitizing financial services and promoting greater financial accessibility for Montenegro’s citizens, aligning with CBCG’s core objectives.
Road Towards an Efficient Financial System
Ripple will assist the CBCG in the pilot project to create CBDC or stablecoin, working with the Montenegro government and academia to develop a practical digital or secure currency solution to test the functionality and potential of blockchain technology.
The project will identify the practical application of a digital currency or national stablecoin and design it to simulate its circulation and use under controlled conditions. CBCG Governor Radoje Žugić stated that the CBCG is committed to keeping an efficient financial system by following up-to-date national banking trends.
He also noted that the CBCG looks forward to collaborating with Ripple on the pilot project for creating CBDC or stablecoin. James Wallis, Ripple’s Vice President of Central Bank Engagements & CBDCs, praised the CBCG’s decision to partner with Ripple.
He said the CBCG is bringing the next level of digital transformation to its financial infrastructure and addressing some of the world’s biggest financial challenges, including financial inclusion.
Ripple has a proven track record of successfully connecting disparate payment systems and championing blockchain’s utility to issue Central Bank Digital Currencies and solve global payments for hundreds of financial institutions worldwide.
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.
Overall, Montenegro’s partnership with Ripple represents a crucial step towards digital transformation and enhancing financial accessibility, providing further momentum for the growing trend towards CBDCs around the world.
