Creating a plan and pilot program for a central bank digital currency, or stablecoin, for Montenegro, was the subject of an agreement between the Central Bank of Montenegro and Ripple, which was made public on April 11. Despite not being a member of the Eurozone, the nation has been a user of the euro since its inception in 2002.
James Wallis, vice president of RippleX for interactions with central banks and CBDCs, stated to Cointelegraph in a written interview.
To introduce the future digital currency “Into circulation under controlled conditions,” Wallis suggested that a sandbox stage is envisaged. To establish use cases, crucial success factors, and time frames, we’ll collaborate closely with the Central Bank. He stated that the project would start this month.
In a statement, Radoje Ugi, the governor of the Central Bank of Montenegro, said that the central bank would examine the benefits and drawbacks that CBDCs or national stable coins might bring to the accessibility of electronic payment methods, security, following the laws, and, most importantly, the protection of end users’ rights and privacy.
“As a central bank committed to following modern national banking trends, the Central Bank of Montenegro is actively ensuring it maintains an efficient financial system.”
The impending agreement between Ripple as well as the Montenegrin Central Bank was initially announced in a tweet from the World Economic Forum in Davos in January by Montenegrin Prime Minister Dritan Abazovic.
For months, Ripple has bragged about its growth in the CBDC industry. According to Wallis, the company is in communication with numerous central banks worldwide and has several CBDC initiatives active throughout the world.