Anthony Welfare, a CBDC advisor for Ripple, recently shared on Twitter that Ripple has partnered with the Central Bank of Montenegro to collaborate on a pilot program to create a digital currency for the country.
The nature of this digital currency is still unclear, but it could be either a national stablecoin or a CBDC. This partnership is a significant step for Ripple as it works towards expanding its presence in the digital currency space.
Different Stages of the CBDC Pilot Program
James Wallis, Vice President for Central Bank Digital Currency at RippleX, commented on the partnership between Ripple and the Central Bank of Montenegro. He stated that the project would involve several stages, including identifying the practical applications of a national stablecoin or CBDC.
The CBDC Vice President also revealed that the project between Ripple and the Central Bank of Montenegro is set to begin later this month and will involve a sandbox stage where the digital currency will be tested under controlled conditions. During this stage, Ripple developers will work closely with the Central Bank of Montenegro to identify potential use cases, establish timelines, and define critical success factors.
The Governor of the Central Bank of Montenegro, Radoje Žugić, has stated that the project will require collaboration between the apex bank, the government, and academic communities.
According to Žugić, this collaboration will enable the team to carefully analyze the risks and benefits of digital currency, considering various factors such as available electronic payment systems, efficiency, security, and more.
“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.
According to Fxcryptonews, the partnership between Ripple and the Central Bank of Montenegro was initially announced by the Montenegrin Prime Minister, Dritan Abazovic, in January. Earlier this year, Abazovic stated that he had met with Ripple’s CEO and James Wallis to explore the possibility of developing a payment infrastructure that would enhance financial inclusion and accessibility.
Although Montenegro is not a member of the Eurozone, it currently uses the euro as its official currency. It remains to be seen whether the digital currency being developed through the partnership between Ripple and the Central Bank of Montenegro will be adopted as the country’s official currency once it is launched.
Ripple’s CBDC Collaborations
Ripple has recently been actively involved in the CBDC industry, with several significant partnerships and initiatives underway. For example, last year, Ripple’s CBDC advisor Anthony Welfare announced that the company had partnered with the central banks of Palau and Bhutan to develop CBDC pilots.
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Furthermore, Ripple’s Senior Vice President Brook Entwistle recently disclosed that the company currently works with over 20 countries on CBDC development, indicating a growing global interest in digital currencies.
In a related development, it was reported last month that Ripple’s Director of CBDC Product Management, Anthony Ralphs, was among the contributors to a new whitepaper by the Digital Euro Association.
