In a significant development, the National Bank of Georgia (NBG) has chosen Ripple Labs, a San Francisco-based company, as its technology partner for the digital Lari (GEL) pilot project.
According to a recent blog post, the pilot program will be executed using Ripple’s central bank digital currency (CBDC) platform.
This partnership will actively explore the potential use cases and benefits of Ripple’s CBDC platform in both the public and business sectors.
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Ripple Emerges as the Chosen One Among Nine Candidates
Notably, the Bank of Georgia selected Ripple after an intense selection process that assessed nine shortlisted candidates. The primary influence behind the decision to choose Ripple was the company’s deep comprehension of the project’s use cases and its successful track record in similar initiatives.
Ripple’s CBDC platform, launched in May, played a pivotal role in the selection process as it enables governments and financial institutions to “mint, manage, transact, and redeem CBDCs.” Additionally, Natia Turnava, the Acting Governor of NBG, confirmed the selection of Ripple based on its technical excellence, underscoring the company’s expertise.
Furthermore, James Wallis, Ripple’s VP of Central Bank Engagements, also commented on the partnership, emphasizing Ripple’s commitment to empowering both public and private entities to achieve their objectives.
Ripple launched its CBDC platform in May 2023, intending to help governments, financial institutions, and central banks navigate the complexities of CBDC management. The XRP Ledger (XRPL) powers the platform and represents an enhanced iteration of Ripple’s private ledger, which the company introduced in 2021 to issue CBDCs.
Ripple’s Involvement in Numerous CBDC Projects
Top financial institutions have consistently acknowledged Ripple’s prowess and expertise in CBDC development. They have selected the company for CBDC pilot projects in various nations, including Bhutan, Montenegro, Hong Kong, Montenegro, and Colombia.
Ripple is currently in discussions with governments and central banks from over 20 countries for digital currency programs.
Notably, the Central Bank of Colombia and the Hong Kong Monetary Authority (HKMA) actively utilize Ripple’s CBDC platform for their pilot ventures. Ripple is currently using its CBDC platform to create the hypothetical e-HKD, which represents the digital version of the Hong Kong dollar.