The partnership between Ripple and the Central Bank of Montenegro marks a significant milestone in the nation's digital currency plans.
The Central Bank of Montenegro has partnered with a blockchain-based digital payment network and protocol, Ripple, to create a strategy and pilot program for the country's digital currency.
It is worth noting that Montenegro's central bank has not revealed what digital currency it plans to create. However, it could be a central bank digital currency (CBDC) or a stablecoin.
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Interesting fact, Montenegro has been using the euro as its official currency since 2002, even though it is not a Eurozone member.
When asked about the new initiative, James Wallis, Vice President for Central Bank Engagements and CBDCs at RippleX, stated that more information about the initiative would be unveiled later in the year.
James Wallis claimed that the project would consist of several phases, including pinpointing practical applications for a "digital currency or national stablecoin."
According to RippleX Vice President for Central Bank Engagements and CBDCs, the sandbox for Montenegro digital currency is set to kick off this month. When talking about the sandbox, Wallis noted:
We'll closely collaborate with the Central Bank to establish use cases, key success factors, and project timelines.
Radoje Žugić, Governor of the Central Bank of Montenegro, revealed that the central bank, in conjunction with the government and academia, would "assess the potential benefits and risks that CBDCs or national stablecoins could present in terms of electronic payment availability, security, efficiency, regulatory compliance, and, most importantly, the protection of end users' rights and privacy."
The Central Bank of Montenegro Governor emphasized that the central bank is "committed to following modern national banking trends."
As a central bank committed to following modern national banking trends, the Central Bank of Montenegro is actively ensuring it maintains an efficient financial system.
Despite the exciting new partnership, Ripple continues to search for a resolution in its legal fight with US Securities and Exchange Commission (SEC). In January, Ripple's CEO stated that the resolution between the crypto firm and SEC should be reached within the first half of 2023. It is worth noting that SEC alleges that Ripple and its executives illegally sold XRP to its investors.
