XRP Price Pumps Above $0.5 as Montenegro Taps Ripple to Develop CBDC
The Central Bank of Montenegro (CBCG) has partnered with real-time payment protocol Ripple to develop a strategy to launch the country’s Central Bank Digital Currency (CBDC) pilot.
According to a press release, the collaboration aligns with the central bank’s objectives, aimed at further digitizing the financial services sector in Montenegro and granting its citizens access to an enhanced digital world.
The price of XRP has increased above $0.5 following the news, alongside the general increase in the crypto market today.
Montenegro to Launch CBDC With Ripple
CBCG’s move also aligns with that of the European Central Bank, which is developing the concept of a digital euro to provide safe and secure electronic payment.
Montenegro’s central bank is looking to join Europe and a list of over 100 countries exploring a CBDC for several use cases, including efficient cross-border payments, current monetary policy, broader financial inclusion, and improved payment security.
CBCG Governor Radoje Žugić commented on the partnership:
“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.”
Analyzing the Benefits and Risks of Blockchain
Žugić revealed that the central bank would work in tandem with the government of Montenegro and its academia to test the functionality and potential of the blockchain to be used for the project.
The central bank’s governor also noted that CBCG would analyze the benefits and risks of using CBDC, especially with users’ rights and privacy.
Furthermore, the bank disclosed that the CBDC project with Ripple would go through various stages. The team would have to identify practical use cases of a national stablecoin and create a design to ensure easy circulation and use under controlled conditions.
James Wallis, Ripple’s Vice President of Central Bank Engagements & CBDCs, said:
“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.”
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