According to the central bank of Montengero, the payments company Ripple has signed an agreement to begin a CBDC pilot program in the region.
The CBCG of Montenegro has announced that it would collaborate with Ripple to create a “strategy and pilot programme” for the introduction of the country’s first CBDC, also known as a “national stablecoin.”
The Bank of Canada has said, According to the Central Bank of the Republic of Montenegro (CBCG), “the introduction of the digital currency is another step forward to digitising financial services and fostering a world of greater financial accessibility for the citizens of Montenegro.”
The Governor of the CBCG has shown enthusiasm for working with Ripple on the new CBDC and has said that Montenegro is following “up-to-date” national banking trends.
A supporter of XRP and an avid observer of the U.S. Securities and Exchange Commission’s (SEC) case against Ripple, attorney Jeremy Hogan, claims that the XRP Ledger (XRPL) may interact with Ripple’s CBDC initiative.
CBDC users may also be able to deposit and withdraw CBDC if the CBDC’s Central Bank launches a ‘gateway’ on the XRPL. This would make it possible for the CBDC to be utilized on the XRP Ledger alongside XRP and other digital assets.
Prime Minister of Montenegro Dritan Abazovic met with Walls and Ripple CEO Brad Garlinghouse earlier this year, confirming the partnership with Ripple.
The agreement is part of Ripple’s effort to digitalize global payments, according to James Walls, the company’s vice president of central bank partnerships and CBDCs.
Financial inclusion is one of the world’s largest problems, and the Central Bank of Montenegro is tackling it by implementing the next stage of digital transformation in its financial infrastructure.
When it comes to solving the problems of worldwide payments and issuing digital currencies by central banks, Ripple has a proven track record of success, having worked with hundreds of financial institutions across the globe. We’re thrilled that the CBCG has decided to work with Ripple to issue the country’s first digital currency and advance the country’s central financial goals.