While the exact technical form of the joint product is yet to be announced, a partnership with the U.S. based digital payments heavyweight will unlock new opportunities for Montenegro's financial system.
Signed and sealed: Ripple enters into agreement with Montenegro Central Bank
According to an official statement shared by Ripple's James Wallis, vice president of central bank engagements and CBDCs, an agreement is signed between the Central Bank of Montenegro (CBCG) and Ripple Inc. Ripple will develop a strategy and pilot for the first national digital currency of Montenegro.
🔥 JUST IN: Central Bank of Montenegro Signs Agreement with Ripple to Develop a Digital Currency Strategy and Pilothttps://t.co/WDtSmWzHOe #xrp $xrp #XRPCommunity #crypto #blockchain
— Cryptic Poet (@1CrypticPoet) April 11, 2023
Per the press release, the new currency will either be developed in the form of a "national stablecoin" or other central bank digital currency (CBDC).
CBCG Governor Radoje Žugić stressed the importance of this collaboration for the progress of economics and society in Montenegro as well as for the financial stability of all its citizens:
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. Through the project, the CBCG will work with the Government of Montenegro and Montenegro's academia to create a practical digital currency or secure currency solution to test the main blockchain technology's functionality and potential.
The collaboration will go through a number of phases, including research into the prospects of CBDC usage in Montenegro and opportunities for its circulation under the control of regulators.
As covered by U.Today previously, two weeks ago, Montenegro already made the headlines on crypto media outlets. At Podgorica airport, police officers arrested Do Kwon, a key figurehead of the collapsed Terra (LUNA) ecosystem.
Strengthening leadership in CBDC segment
The preliminary agreement between Ripple and Montenegro was inked on Jan. 30, 2023. Wallis is excited by the collaboration with the country:
The Central Bank of Montenegro 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 for global payments to hundreds of financial institutions around the world. We are pleased that the CBCG has chosen Ripple to help launch its first digital currency and further address the country's core financial objectives.
Ripple has evolved into a global leader of the CBDC segment. It is the only platinum partner of the London Digital Monetary Institute Symposium 2023, one of the most crucial events in this sphere.
Also, Ripple is a partner of numerous CBDC initiatives associated with the largest world currencies: the Euro, U.S. Dollar and Great Britain Pound.
Alex Dovbnya
Yuri Molchan
