The Central Bank of Montenegro (CBCG) has partnered with Ripple (XRP) to leverage its crypto solutions for the creation of the nation’s first central bank digital currency (CBDC)
The Central Bank of Montenegro (CBCG) will have access to Ripple (XRP) and its crypto solutions in order to create the nation’s first CBDC.
The cryptocurrency options selected by the Central Bank of Montenegro are Ripple (XRP)
The Central Bank of Montenegro (CBCG) chose Ripple (XRP) and its blockchain and cryptocurrency solutions to construct its first CBDC.
This contract establishes a stablecoin pilot project for the country’s Central Bank Digital Currency. (CBDC).
In line with the CBCG’s goals, the digital currency’s debut advances financial services digitization and Montenegrin financial inclusion.
In this regard, James Wallis, vice president of engagements at Ripple for central banks and CBDC, stated:
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.
XRP for CBDC in Montenegro
Radoje Žugić, CBCG Governor, added the following to his remarks:
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. It will also analyse the advantages and risks that CBDCs or national stablecoins could pose concerning electronic means of payment availability, security, efficiency, compliance with regulations, and most importantly, the protection of end users’ rights and privacy.
This was ugi’s way of describing how Ripple will collaborate with the CBCG, the Montenegrin government, and Montenegrin academic institutions to test the Blockchain in preparation for the development of the CBDC.
A digital currency’s practicality, a model of use, and regulated circulation will be part of the project.
How is the XRP cryptocurrency priced?
The sixth-largest cryptocurrency by market value, Ripple (XRP), is still rising. XRP has increased from $0.36 to $0.52 over the past month.
This outcome implies that XRP has overcome the “threats” that were allegedly responsible for its price decline in early March.
After a withdrawal run, the Federal Deposit Insurance Corporation closed Silicon Valley Bank (SVB), and Ripple revealed its exposure.
It turns out that despite the possibility that the discovery might cause XRP to collapse, XRP not only held up but also performed.