Montenegro to Test Ripple for CBDC
Posted on 05/03/2023
Crypto company Ripple has announced the Central Bank for the country of Montenegro is interested in creating a central bank digital currency (CBDC) and is using the Ripple currency for its pilot program. Ripple has a market value of US$ 0.51 per token. Montenegro currently uses primarily the euro.
James Wallis, Ripple’s Vice President of Central Bank Engagements & CBDCs, says Montenegro is on the leading edge of financial innovation due to the program: “The Central Bank of Montenegro is bringing the next level of digital transformation to its financial infrastructure and addressing some of the world’s biggest financial challenges, including financial inclusion.” The project seeks to analyze opportunities and pitfalls of adopting a central bank digital currency as a national currency. The U.S. Federal Reserve has been working on its own system, FedNow. FedNow is expected to launch in July. The Fed has not determined whether it is going to pursue a CBDC yet, taking a cautious stance: “While the Federal Reserve has made no decisions on whether to pursue or implement a central bank digital currency, or CBDC, we have been exploring the potential benefits and risks of CBDCs from a variety of angles, including through technological research and experimentation. Our key focus is on whether and how a CBDC could improve on an already safe and efficient U.S. domestic payments system.”
Ripple says the use of cryptocurrencies increase equity and are ESG-minded: “Ripple is a crypto solutions company that transforms how the world moves, manages and tokenizes value. Ripple’s business solutions are faster, more transparent, and more cost effective – solving inefficiencies that have long defined the status quo. And together with partners and the larger developer community, we identify use cases where crypto technology will inspire new business models and create opportunity for more people.” Ripple says it can build a “more sustainable economy,” “increasing access” for the disenfranchised, and overall foster “a world without economic borders.”