Digital currency project started with Ripple
Drittan Abazovic, Prime Minister of Montenegro, a European country located in the Balkans, recently said that he had launched a pilot project with Ripple to build a digital currency or stablecoin for the country.
Produktivan sastanak sa CEO kompanije @Ripple @bgarlinghouse i VP za saradnju sa centralnim bankama #James WallisRazgovarali smo o razvoju platne infrastrukture koja bi obezbijedila veću finansijsku dostupnost i inkluziju. Crna Gora otvorena za novu vrijednost i ulaganja. pic.twitter.com/YdPeWHUtCm
—Dr Dritan Abazovic (@DritanAbazovic) January 18, 2023
Abazovich met with Ripple CEO Brad Garlinghouse and James Wallis at the World Economic Forum in Davos. Wallis is the head of Central Bank Digital Currencies (CBDC) at Ripple.
Prime Minister Abazovich explained:
We discussed the development of payment infrastructure to expand financial access and provide financial inclusion. Montenegro is open to new values and investments.
Montenegro is not a member of the European Union (EU), but uses the euro as its currency and does not have its own currency. For this reason, it is unclear what kind of assets the digital currency, which is about to start a demonstration experiment (pilot), will be connected to, and the details have not yet been revealed.
What are CBDCs
A digital currency issued by the central bank of a country or region. It stands for “Central Bank Digital Currency”. The big difference from virtual currency is that CBDC is a legal tender. While it is expected to reduce costs and improve efficiency in currency management and settlement, there are many issues to be considered, such as protection of personal information and privacy, security measures, and impact on the financial system.
Ethereum Founder Granted Citizenship
Montenegro, a small country with a population of about 620,000, has recently shown a positive attitude towards the introduction of crypto assets (virtual currency).
Montenegro granted citizenship to Ethereum (ETH) founder Vitalik Buterin in April 2022. At that time, Finance Minister Mirojko Speiji commented that Mr. Buterin will contribute to the further promotion of Montenegro and the development of the cryptocurrency industry in our country.
In the same month, Montenegro hosted a cryptocurrency conference called “Future Now!”. Buterin and Speith, along with Ethereum researchers and legal scholars, discussed crypto regulation, government adoption, and more.
“Within three years, the blockchain industry will account for around 30% of Montenegro’s economy, and could contribute another ¥210-280 billion (€1.5-2 billion) to the Gross Domestic Product (GDP),” Spige said. I think,” he said.
Ripple’s CBDC program
Ripple is in the process of partnering on CBDC. In cooperation with Bhutan, the Republic of Palau, and the Digital Euro Association (DEA), we are working on CBDC demonstration experiments and research and development.
In August 2022, it also revealed that it would use the cryptocurrency XRP for cross-border transactions on its CBDC development platform.
Relation: US Ripple introduces XRP as a bridge currency on the CBDC platform