SECURITY SOLUTIONS
CENTRAL BANK OF MONTENEGRO AND RIPPLE TO DEVELOP A DIGITAL CURRENCY STRATEGY AND PILOT
Central Bank of Montenegro ( CBCG ) has agreed to collaborate with Ripple , an enterprise crypto and blockchain solutions provider , to develop a strategy and pilot programme to launch one of the country ’ s first digital currencies in the form of a Central Bank Digital Currency ( CBDC ) or national stablecoin . Aligning with the CBCG ’ s core objectives , the digital currency ’ s introduction is another step forward to digitising financial services and fostering a world of greater financial accessibility for Montenegro ’ s citizens .
A CBDC is a digitised version of the currency issued by central banks . Today , over a hundred countries are exploring and developing a CBDC for many use cases including widening financial inclusion , modernising monetary policy , improving payment security and increasing crossborder payments efficiency .
Simultaneously , the European Central Bank is working to develop the digital euro concept as a future means of safe , secure and practical electronic payment in the euro area .
Radoje Žugić , CBCG Governor , said : “ 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 .
“ Through the project , the CBCG will work with the Government of Montenegro and Montenegro ’ s academia to create a practical digital currency or secure currency solution to test the main blockchain technology ’ s functionality and potential . It will also analyse 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 .”
The project will go through several stages , including identifying the practical application of a digital currency or national stablecoin and the design to simulate its circulation and use under controlled conditions .
“ The Central Bank of Montenegro is bringing the next level of Digital Transformation to its financial infrastructure and addressing some of the world ’ s biggest financial challenges , including financial inclusion ,” said James Wallis , Vice President of Central Bank Engagements & CBDCs , Ripple . “ 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 .” � www . intelligentfin . tech
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