To create a central bank digital currency (CBDC) pilot, the Central Bank of Montenegro (CBDG) and Ripple have teamed together. The CBDG will be able to identify the use cases and assess the benefits and drawbacks of CBDCs through the pilot program.
Montenegro and Ripple to Develop CBDC
The Central Bank of Montenegro (CBDG) and blockchain-based digital payment system Ripple have decided to work together to create a CBDC pilot that will function as the country’s stablecoin, the company said on Tuesday. According to Ripple, the pilot will provide the CBDG the chance to determine the real-world use for a CBDC and construct a model simulating its circulation.
The project, according to Radoje Zugic, governor of the central bank of Montenegro, aims to “analyze the advantages and risks that CBDCs or national stablecoins may pose regarding electronic means of payment availability, security, efficiency, compliance with regulations, and most importantly, the protection of end users’ rights and privacy.”
A CBDC, which may be used as payment currency online, is a digital representation of central bank money that is generated and backed by a central banking authority. By taking this step, Montenegro becomes the newest nation to compete in the CBDC race. The Bank of Japan declared plans to launch a pilot program to evaluate the usage of the Digital Yen at the beginning of this year.
One of the countries leading CBDC development globally is China, whose digital currency electronic payment (DCEP) initiative is currently in advanced testing. With its CBDC project, which it began developing in 2014, the People’s Bank of China (PBOC) has already carried out several extensive tests.
30% Growth in Ripple Ahead of SEC Decision
Last month, the price of XRP increased by an incredible 30%, enabling the cryptocurrency to reach new highs above $0.5 that hadn’t been reached since May 2022. The price increase is the result of traders’ expectations that Ripple would win its two-year legal battle against the US Securities and Exchange Commission (SEC), the industry regulator.
Trading analysts are forecasting a breakout from the current resistance around $0.534 and an extended swing leg upward again towards $1 over the next several months while the litigation verdict is still being decided. As this is going on, it appears that investors are beginning to put money into alternative utility tokens, like XRP, that have the potential to have a substantial influence on the long-term sustainability of our planet and fight climate change.