Does XRP Play A Role In The Ripple-Montenegro CBDC Deal?
The central bank of the country says that payments company Ripple has signed a deal with Montengero to start a CBDC pilot program.
The Central Bank of Montenegro (CBCG) says in a press release that it has agreed to work with Ripple to create a “strategy and pilot program” for the country’s first CBDC or “national stablecoin.”
The central bank says,
“Aligning with the CBCG’s core objectives, the digital currency’s introduction is another step forward to digitizing financial services and fostering a world of greater financial accessibility for Montenegro’s citizens.”
The Governor of the CBCG says that Montenegro is following “current” national banking trends and that he or she is excited to work with Ripple on the new CBDC.
“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.”
Attorney Jeremy Hogan, who backs XRP and closely follows the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Ripple, says that the XRP Ledger (XRPL) could interact with Ripple’s CBDC program.
“One possibility is that a CBDC could be issued on top of the XRPL as an IOU represented by a specific token. This would allow for the CBDC to take advantage of the XRP Ledger’s fast/efficient settlement times.
Another possibility is that the CBDC’s Central Bank could open a ‘gateway’ on the XRPL that allows users to deposit and withdraw the CBDC. This would allow for the CBDC to be used in conjunction with XRP and other digital assets on the XRP Ledger.”
After meeting with Walls and Ripple CEO Brad Garlinghouse earlier this year, Dr. Dritan Abazovic, the prime minister of Montenegro, confirmed that the country would work with Ripple.
James Walls, Ripple’s vice president of central bank engagements and CBDCs, says that the partnership is part of the company’s effort to bring global payments into the digital age.
“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…
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.”
