Have you heard the news about Montenegro teaming up with Ripple to develop a national digital currency? The Central Bank of Montenegro made the announcement on April 11, stating that they have signed an agreement with Ripple to develop a strategy and pilot program for a Montenegrin digital currency.
The country currently uses the euro as its currency, but this new move towards a digital currency could change things up for Montenegro. More details about the project are yet to be revealed, but RippleX's vice president for central bank engagements and CBDCs, James Wallis, said that the project will go through several stages before its practical application can be identified.
Wallis also revealed that a sandbox stage is planned to put the future digital currency into circulation under controlled conditions. The project is set to begin this month and will involve working closely with the Central Bank to determine use cases, key success factors, and timelines.
Central Bank of Montenegro Governor Radoje Žugić added that the central bank would work with the government and the academic community to analyze the advantages and risks that CBDCs or national stablecoins could pose. The goal is to ensure an efficient financial system that is compliant with regulations, protects end users' rights, and maintains privacy.
It's worth noting that Ripple has been expanding in the CBDC space for months, with multiple CBDC projects ongoing around the world. This partnership with Montenegro is just one of many that Ripple is involved in.
Exciting times ahead for Montenegro as they make strides towards a national digital currency!