Montenegro Explores Digital Currency with Ripple Collaboration
Montenegro's Central Bank has forged a partnership with Ripple to examine the potential for a Montenegrin digital currency, which may take the form of a central bank digital currency (CBDC) or stablecoin. Although not a member of the Eurozone, Montenegro adopted the euro as its official currency in 2002.
James Wallis, RippleX's VP for central bank engagements and CBDCs, shared with Cointelegraph that more information about the project will be released later in the year. The initiative will undergo multiple phases, including the identification of practical implementations for a national digital currency or stablecoin.
Wallis also mentioned a sandbox phase, which will see the digital currency tested under controlled conditions. The project, set to begin this month, will involve working closely with the Central Bank to pinpoint use cases, essential success factors, and project timelines.
Radoje Žugić, Central Bank of Montenegro Governor, highlighted the bank's dedication to following contemporary national banking trends and ensuring a robust financial system. He added that the bank would cooperate with the government and academic institutions to study the potential benefits and risks of CBDCs or national stablecoins in relation to electronic payment methods, security, efficiency, regulatory adherence, and protection of end-user rights and privacy.
Wallis also mentioned a sandbox phase, which will see the digital currency tested under controlled conditions. The project, set to begin this month, will involve working closely with the Central Bank to pinpoint use cases, essential success factors, and project timelines.
Radoje Žugić, Central Bank of Montenegro Governor, highlighted the bank's dedication to following contemporary national banking trends and ensuring a robust financial system. He added that the bank would cooperate with the government and academic institutions to study the potential benefits and risks of CBDCs or national stablecoins in relation to electronic payment methods, security, efficiency, regulatory adherence, and protection of end-user rights and privacy.
