Montenegro’s financial system is set to receive a boost through a partnership with US-based digital payments giant Ripple.
According to Ripple‘s vice president of central bank engagements and CBDCs, James Wallis, an official agreement has been signed between the Central Bank of Montenegro (CBCG) and Ripple to develop the country’s first national digital currency.
Although the exact form of the joint product has not been announced, the new currency will either take the form of a “national stablecoin” or other central bank digital currency (CBDC).
CBCG Governor Radoje Žugi? emphasized the importance of collaboration for the economic progress and financial stability of Montenegro’s citizens. The partnership will involve several phases, including research into the potential usage of CBDC in Montenegro and opportunities for its circulation under regulatory control.
The preliminary agreement between Ripple and Montenegro was signed on January 30, 2023, two weeks after the arrest of Do Kwon, a key figurehead of the collapsed Terra (LUNA) ecosystem, at Podgorica airport.
Ripple is a global leader in the CBDC space and has partnered with several CBDC initiatives associated with major world currencies such as the Euro, US Dollar, and Great Britain Pound.
Ripple is also the only platinum partner of the London Digital Monetary Institute Symposium 2023. Wallis expressed his excitement about the partnership with Montenegro, and the exact technical form of the joint product is yet to be announced.
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