Ripple helps Montenegrin government develop digital stablecoin (CBDC)

Ripple helps Montenegrin government develop digital stablecoin (CBDC)

The Prime Minister of Montenegro announced via Twitter that his country is working with Ripple on its own stablecoin.

The question is whether this can be classified as CBDC. The Balkan country uses the Euro and the European Central Bank is more likely to develop a Euro-based CBDC than the states.

The Prime Minister meets Ripple’s Brad Garlinghouse

Dr. Dritan Abazovic, Prime Minister of Montenegro tweeted on January 18, 2023 in the Ripple pilot project. Somehow his tweet was not picked up by the usually fast-paced crypto news.

Via Twitter, the Prime Minister of Montenegro reported his meeting with Ripple CEO Brad Garlinghouse and Vice President of Ripple Central Bank Engagement and CBDC’s James Wallis, saying:

Productive meeting with Ripple CEO Garlinghouse and Vice President of Ripple Central Bank Engagement James Wallis. We talked about developing a payment infrastructure that would allow greater accessibility and financial inclusion. Montenegro is open to new values ​​and investments.”

CBDC and the Euro in Montenegro

Garlinghouse’s role is self-explanatory, but James Wall exclusively trades CBDCs on behalf of Ripple, which seems to point to more than just a simple stablecoin.

Dr. Abazović: “In collaboration with Ripple and the Central Bank, we started a pilot project to build the first digital currency or stablecoin for Montenegro.”

Montenegro has been a candidate for membership of the European Union since 2010 and although Montenegro is not (yet) part of the eurozone, Montenegro does use the euro. This means that the euro is not legal tender in the country, but is treated as such by the government and the people.

If all goes well, Montenegro will join the EU in 2025.

Follow or copy the leaders

In this regard, it is worth noting that Ivan Boskovic, former head of payment technology at the Central Bank of Montenegro, wrote an article about this on December 14. This article was published on Currency Research and is titled:

“Central Bank of Montenegro: How to Foster Banking and Payments Innovation in a Small Developing Economy.”

Boskovic wrote that digital transformation is an important source of long-term growth, especially for the financial sector. It addresses the common problems of small countries:

“However, some countries such as Singapore, Luxembourg and Malta are among the first. Their visionary policies paid off and are now regarded as role models for many others. The key question is whether their success is easy to track or replicate.”

According to Boskovic, one of the success factors of these countries is the creation of favorable political preconditions. The next step must be taken by working with Ripple (XRP). This should ensure more knowledge and technology in the country.

Ripple (XRP) in 2023

In 2023, Ripple will focus on enabling payment systems for so-called central bank digital currencies. The company recently hosted a webinar with the Digital Pound Foundation called “What’s a digital scale for?”. Jacob Wallis prepared the motto.

Ripple does not want to offer a solution for all central banks, but focuses mainly on smaller central banks. It was previously announced that Palau and Bhutan will cooperate with Ripple, which is why Montenegro has joined.

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Source: Btc Direct

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