In order to develop a plan and pilot program for the country’s introduction of a Central Bank Digital Currency (CBDC), the Central Bank of Montenegro (CBCG) teams up with the fintech firm Ripple.
According to the announcement, “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 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 analyze 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.
RippleX’s vice president for central bank engagements and CBDCs, James Wallis, will be unveiling more details in the near future.
Compiled by Coinbold