Montenegro’s Central Bank Will Launch a CBDC Pilot With Ripple

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Last Updated on April 11, 2023 by Bitfinsider

Despite using the euro as its de facto currency, the Central Bank of Montenegro (CBCG) intends to launch a pilot program for a central bank digital currency (CBDC) or national stablecoin using blockchain vendor Ripple.

According to Ripple, the pilot would see the central bank find practical applications for such a coin and create a design to imitate its circulation.

The project will “analyze the benefits and risks that CBDCs or national stablecoins could pose in terms of electronic payment availability, security, efficiency, regulatory compliance, and, most importantly, the protection of end users’ rights and privacy,” according to CBCG Governor Radoje Zugic in a statement.

Montenegro is not a member of the European Union (EU), and it embraced the euro without becoming a member of the eurozone. The European Central Bank (ECB) and the EU are expected to make a decision later this year on whether to launch a digital euro.

Over 100 nations are investigating the creation of a CBDC – a digital version of central bank money for public usage – with several already entering a practical phase.

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