Global payments-focused blockchain company Ripple is collaborating with the Central Bank of Montenegro (CBCG) on a strategy and pilot program to develop the country’s first national stablecoin.
The program, which will reportedly go through several test phases, aims to check the advantages and risks CBDCs face regarding availability, efficiency, security, regulations and privacy. Furthermore, according to the press release, the collaboration would also assist in looking into the digital asset’s practical aspects, design, and adoption.
“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,” CBCG Governor Rodoje Zuric said.
Montenegro is currently using the euro, although it is not part of the European Union (EU), which is also contemplating a launch of a digital euro later in the year.
A central bank digital currency is a digitized version of the country’s currency issued by its central bank. There are currently hundreds of countries exploring the potential of a CBDC in their respective jurisdiction. Some of the use cases of virtual currency include financial inclusion, adopting a modern monetary system, and improving payment security.
