The Central Bank of Montenegro will develop a pilot version of its Central Bank Digital Currency (CBDC) with blockchain provider Ripple.
Ripple announced on April 11 that the pilot will confirm the utility of central bank stablecoins and create a mechanism to simulate their circulation.
The project “reviews the potential benefits and risks of CBDCs or state-sponsored stablecoins in terms of electronic payment availability, security, efficiency, regulatory compliance, and most importantly the protection of end-user rights and privacy.” We will analyze it,” Central Bank of Montenegro Governor Radoje Zugic said in a statement.
To date, more than 100 countries are considering developing CBDCs (which digitize central bank-issued money and make it available to citizens), and some have entered the operational stage.
Montenegro is a member state of the European Union (EU) and is within the euro area, so if the European Central Bank (ECB) introduces a digital euro, it will adopt a digital euro. The ECB is expected to make a decision on its introduction later this year.
｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Original: Montenegro’s Central Bank to Develop CBDC Pilot With Ripple