The Central Bank of Montenegro (CBCG) has partnered with Ripple to develop a strategy for launching a digital currency in the country, possibly a Central Bank Digital Currency (CBDC) or a stablecoin.
The country has used the euro as its currency since its introduction in 2002, despite not being part of the eurozone.
Collaboration with Ripple for CBDC
According to a press release does the cooperation align with the central bank’s objectives, aimed at further digitizing the country’s financial services sector and providing its citizens with access to an enhanced digital world.
The Central Bank of Montenegro is trailing the European Central Bank and a list of more than a hundred other countries that are currently investigating CBDCs for several use casesincluding efficient cross border payments, current monetary policy, broader financial inclusion and enhanced payment security.
Radoje Zugic, governor of CBCG, indicated that the central bank will work with the country’s government and its academia to test the functionality and potential of the blockchain that will be used for the project.
He also noted that the CBCG will analyze the benefits and risks of CBDCs or national stablecoins with regard to the availability of electronic means of payment, security, efficiency, regulatory compliance and, most importantly, the protection of end-users’ rights and privacy.
James Wallis, RippleX’s vice president for engagement with central banks and CBDCs, had this to say about the new partnership:
“We are pleased that CBCG has chosen Ripple to help launch its first digital currency and further address the country’s key financial goals.”
Wallis also indicated that the project will start this month and that we can expect more details about the project later in the year.
XRP’s rise was driven by retail investors
In the last week and a half of March, Ripple’s token, XRP, skyrocketed by as much as 50%. According to an analysis by Kaiko, a Paris-based crypto data provider, it was mainly retail investors that contributed to this increase. At the same time, the whales have created sales pressure in the market.
XRP managed to outperform other cryptocurrencies such as bitcoin (BTC) and ethereum (ETH) as investors hope and speculate on a positive outcome from Ripple in the lingering lawsuit against the US Securities and Exchange Commission (SEC).