Ripple said the CBDC project will involve several stages, including identifying practical applications for CBDC, simulating distribution, and using it under controlled conditions.
In an interesting development on Tuesday, April 11, blockchain startup Ripple has teamed up with the Central Bank of Montenegro (CBCG) to build a pilot program for the launch of the country’s Central Bank Digital Currency (CBDC). bottom.
So far, Montenegro has used the euro as its currency since its introduction in 2022. As part of the partnership, Ripple will help Montenegro identify practical applications for his CBDC.
As you know, over 100 countries around the world are working on their respective CBDCs. Strong economies like China and the Eurozone have already started working towards the launch of CBDCs. Different countries are working on his CBDC initiative for different purposes. This includes expanding financial inclusion, improving payment security, modernizing monetary policy, and increasing cross-border payments efficiency. Commenting on the development, CBCG Governor Radje Jugic said:
“Through this project, CBCG will collaborate with the Montenegrin government and Montenegrin academia to create a working digital currency or secure currency solution and test the capabilities and potential of major blockchain technologies. Consider the benefits and risks that a CBDC or national stablecoin may pose in terms of payment instrument availability, security, efficiency, regulatory compliance, and most importantly, protection of end-user rights and privacy. analyze.”
Different stages of CBDC launch
Ripple said the project will go through several implementation stages. This includes identifying real-world applications for CBDC, simulating circulation, and using it under controlled conditions. James Wallis, Ripple’s vice president of Central Bank Engagements and CBDC, said the company is planning a sandbox stage for its CBDC pilot launch.he Added:
“Ripple has a proven track record of successfully connecting disparate payment systems, championing the utility of blockchain to issue central bank digital currencies, and solving global payments to hundreds of financial institutions around the world. We are delighted that CBCG chose Ripple to help launch the first digital currency and further address the country’s core financial goals.”
This is not the first time Ripple has worked on a CBDC project. This year, the company also released his CBDC whitepaper.
Bhushan is a FinTech enthusiast and has a great knack for understanding financial markets. His interests in economics and finance focus on the emerging blockchain technology and cryptocurrency market. He is in a continuous learning process and keeps himself motivated by sharing what he has learned. In his free time, he reads thriller novels and sometimes develops his cooking skills.