Montenegro Confirms Ripple as its New CBDC Project Partner

Montenegro partners with Ripple to develop a pilot project for its digital currency.

Ripple’s CBDC advisor Anthony Welfare has taken to Twitter to announce a partnership between the company and the Central Bank of Montenegro. 

The partnership, according to Welfare, will see the duo work on a pilot program to develop Montenegrin digital currency. According to an announcement today, the Montenegrin digital currency could be a national stablecoin or a Central Bank Digital Currency (CBDC).

Different Stages of the CBDC Pilot Program

Commenting on the development, James Wallis, RippleX’s Vice President for Central Bank Digital Currency, said the project would go through different stages, including identifying the practical application of a national stablecoin or CBDC. 

Wallis disclosed that the project, which will commence later this month, will also go through a sandbox stage that will circulate the digital currency under controlled conditions. He added that Ripple developers would work in tandem with the Central Bank of Montenegro to determine use cases, timelines, and critical success factors. 

Radoje Žugić, the Governor of the Central Bank of Montenegro, revealed that the project would require the apex bank to work with the government and other academic communities. 

Per Žugić, the collaboration would help the team analyze the risks and benefits of digital currency while also considering other factors, including available electronic payments, efficiency, security, etc. 

– Advertisement –

“As a central bank committed to following up-to-date national banking trends, the CBCG is actively ensuring it maintains an efficient financial system. We look forward to collaborating with Ripple on the pilot project for creating CBDC or stablecoin,” he added. 

Notably, the partnership between Ripple and the Central Bank of Montenegro was first disclosed by Montenegrin Prime Minister Dritan Abazovic in January. In a tweet earlier this year, Abazovic revealed that he met with Ripple CEO and Wallis to discuss the development of a payment infrastructure that would provide greater financial inclusion and accessibility. 

Produktivan sastanak sa CEO kompanije @Ripple @bgarlinghouse i VP za saradnju sa centralnim bankama #JamesWallis. Razgovarali smo o razvoju platne infrastrukture koja bi obezbijedila veću finansijsku dostupnost i inkluziju. Crna Gora otvorena za novu vrijednost i ulaganja. ⬇️ pic.twitter.com/YdPeWHUtCm

— Dr Dritan Abazovic (@DritanAbazovic) January 18, 2023

Despite not being part of the Eurozone, Montenegro uses the euro as its official currency. It is unclear whether the country will adopt the digital currency as its official currency when it officially launches. 

Ripple’s CBDC Efforts

Meanwhile, Ripple has been making significant moves in the CBDC industry in recent months. As reported last year, Welfare announced that Ripple partnered with Palau and Bhutan central banks to develop CBDC pilots. 

In addition, Ripple’s Senior Vice President Brook Entwistle revealed last month that the blockchain company is working with more than 20 countries on CBDC development. 

In a similar development, TheCryptoBasic also reported last month that Ripple Director of CBDC Product Management Anthony Ralphs was listed among the contributors to a new Digital Euro Association whitepaper. 

– Advertisement –