In a communicated published on April 11, the Central Bank of Montenegro announced the signing of an agreement with the blockchain payments company, Rippleaiming to develop a strategy and pilot program for a Montenegrin digital currency in the form of a central bank digital currency (CBDC), or a stablecoin.
The euro has been the official currency of Montenegro since its introduction in 2002, although the country is not part of the euro zone. Montenegro has been waiting for EU membership since 2018.
The Governor of the CBCG, Radoje Žugic, noted that the central bank is committed to ensuring the implementation of innovative solutions in banking, so as to maintain an efficient financial system. He stated :
“We look forward to collaborating with Ripple on the pilot project of creating CBDC or stablecoin. Under this project, CBCG will work with the government and universities of Montenegro to create a practical digital currency or secure currency solution to test the functionality and potential of the leading blockchain technology. »
The central bank will also analyze the advantages and risks posed by CBDCs or national stablecoins in terms of the availability of electronic means of payment, security, efficiency, compliance with regulations and, above all, the protection of rights and rights. the privacy of end users.
On Ripple’s side, James Wallisvice-president of RippleX, in charge of mobilizing and engaging central banks and CBDCs, said the project will unfold in several stages. One of them will see the creation of a regulatory sandbox (sand box) which will make it possible to test the circulation of the future digital currency under “controlled conditions”. Wallis also added:
“We will work closely with the Central Bank to determine use cases, key success factors and timelines. The project will start this month.
Ripple is positioning itself as one of the most dynamic players in the sector when it comes to CBDC. The company has indeed developed a complete platform to mint, manage, transact and destroy CBDCs. Each solution is built on a private ledger based on XRP Ledger technology. Wallis said the company is currently working on several CBDC projects around the world and is in dialogue with dozens of central banks.
In 2022, Ripple had organized a contest called CBDC Innovate Challenge during which participants were invited to create applications around CBDCs using the technology developed by the firm in three categories: retail payments, interoperability and financial inclusion. The competition would have had nearly 500 entries and six winners had been chosen at the end of this challenge.
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