Montenegro’s Central Bank to Develop CBDC Pilot With Ripple

The Central Bank of Montenegro (CBCG) plans to develop a central bank digital currency (CBDC) pilot with blockchain provider Ripple.

The pilot will see the central bank identify the practical application of a national stablecoin and come up with a design to simulate its circulation, Ripple announced on Tuesday.

The project will “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,” CBCG Governor Radoje Zugic said in the statement.

Over 100 countries are exploring the development of a CBDC – a digitized form of central bank money for use by the public – with some having entered a practical phase.

Montenegro is a member of the European Union (EU) and part of the eurozone, so would see the adoption of a digital euro if one is introduced by the European Central Bank (ECB) . The ECB is scheduled to make a decision on whether to do so later this year.