Ripple: Montenegro Central Bank to Develop CBDC Pilot With XRP
- The central bank of Montenegro has confirmed that it will be working with Ripple and its XRP technology to launch its pilot CBDC which aims to bring financial inclusion to the nation.
- Montenegro joins a list of 100 countries exploring CBDCs and around 20 are working or in discussion with Ripple to utilize its cutting-edge technology.
More than 100 countries are in different stages of developing CBDCs. In the face of it, China is the most advanced with other countries such as Nigeria, Japan, and India not all far off. While some countries have developed the infrastructure required from the ground up, some are utilizing tech from already established and tested projects. As confirmed in the last couple of hours, the central bank of Montenegro has sought Ripple to facilitate the launch of its pilot CBDC.
Montenegro and a majority of these countries are looking to digitize the out-of-date financial systems and allow for wider financial inclusion.
CBCG Governor Radoje Zugic said in a statement the project will;
analyze 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,
Earlier this month, news was circulating that India might also be considering using Ripple and XRP technology for its CBDC pilot. India plans to accelerate its program rapidly and reach over one million users very soon.
Ripple has in the last couple of years strategically placed itself at the center of the CBDC development. A few months ago, Ripple confirmed that it was in discussion with more than 20 central banks to develop their own CBDCs. This is in spite of the bank facing regulatory trouble with the SEC which accuses the fintech company and its executives of issuing XRPs as tokens instead of registered securities.
The ongoing legal battle has cast a shadow over the future of the company and digital assets but analysts are confident that Ripple will win. Additionally, Ripple is adamant that even if the bank losses, it will relocate to another nation and continue its business as usual.
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