Montenegro partners with Ripple to launch its own digital currency

Montenegro’s central bank announced today that it has signed an agreement with Ripple to develop a strategy and pilot program for a national stablecoin or central bank digital currency (CBDC). It is essential to know that the exact nature of the potential future of CBDC is not yet known, however, as Montenegro has no national currency of its own. The country has been using the euro since 2002, despite not being part of the Eurozone. Ripple’s Vice President for Central Bank Engagements and CBDCs, James Wallis, said that the project would go through several stages, including identifying practical applications of the digital currency and a sandbox stage to put the future digital currency into circulation under controlled conditions. The project will begin this month, he added. The Central Bank of Montenegro Governor Radoje Žugić said in a statement that the central bank would work with the government and academic community to analyze the advantages and risks of CBDCs or national stablecoins in terms of electronic means of payment, security, efficiency, compliance with regulations, and the protection of end-users rights and privacy.