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JAKARTA - Ripple, a blockchain technology company known for its XRP payment protocol, has announced a partnership with the Central Bank Montenegro to develop the Balkan country's digital currency. Anthony Welfare, CBDC Advisor (Central Bank Digital Currency) Ripple, announced this collaboration through his personal Twitter account.

According to Welfare, the partnership will involve both parties in a pilot program to develop Montenegro's digital currency. Today's announcement indicates that Montenegro's digital currency could be a national stablecoin or CBDC.

The project will go through several stages, including identifying practical applications from national stablecoins or CBDCs. James Wallis, Vice President of RippleX for Central Bank Digital Currency, revealed that the project will start in recent weeks and will also go through a "sandbox" stage that will circulate digital currencies under control.

He added that the Ripple developer will work closely with the Central Bank Montenegro to determine cases of use, timeframe, and critical success factors.

Radoje Badminton, Governor of Central Bank Montenegro, revealed that this project will require cooperation between the central bank and the government and other academic communities. This collaboration will help the team to analyze the risks and benefits of digital currencies and consider other factors such as the availability of electronic payments, efficiency, security, and so on.

"As a central bank committed to following the latest national banking trend, CBCG (Central Bank of Montenegro) actively ensures maintaining an efficient financial system. We hope to collaborate with Ripple on a pilot project to create CBDC or stablecoins," he added.

The partnership between Ripple and Central Bank Montenegro was first unveiled by Prime Minister Montenegro, Dritan Abazovic, in January. Abazovic revealed that he had met with Ripple and Wallis CEOs to discuss the development of payment infrastructure that would provide greater financial inclusion and accessibility.

Meanwhile, Ripple has taken significant steps in the CBDC industry in recent months. As reported last year, Welfare announced that Ripple has partnered with the central banks of Palau and Bhutan to develop CBDC pilots.


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