The National Bank of Montenegro announced on April 11 that it is entering into a partnership with Ripple. This collaboration is aimed at developing a strategy and pilot program for a digital currency in Montenegro, possibly a central bank digital currency (CBDC) or a stablecoin.
Montenegro has used the euro as its national currency since its launch in 2002, but is not part of the eurozone. James Wallis, RippleX’s Vice President for Engagement with Central Banks and CBDCs, issued the following statement:
More details will be revealed later in the year. The project will go through several phases, including identifying the practical application of a digital currency or national stablecoin.
—James Wallis
Wallis further indicated that a test phase is planned to bring the future digital currency into circulation under controlled conditions.
We will work closely with the Central Bank to determine use cases, key success factors and timelines. The project will start this month
—James Wallis
Montenegro wants to follow modern national banking trends
The Central Bank of Montenegro will cooperate with the government and the academic community. Radoje Žugić, the governor of the Central Bank of Montenegro, said:
“The aim is to analyze the benefits and risks that CBDCs or national stablecoins can bring with regard to the availability of electronic means of payment, security, efficiency, regulatory compliance and, above all, the protection of users’ rights and privacy. As a central bank committed to following modern national banking trends, the Central Bank of Montenegro actively ensures that it maintains an efficient financial system.”
Montenegrin Prime Minister Dritan Abazovic first announced the upcoming deal between Ripple and the Montenegrin central bank in a tweet from the World Economic Forum Davos in January.
Ripple has been hard at work expanding its share of the world of CBDCs in recent months. Wallis said the company has several CBDC projects running around the world.