Montenegro's Central Bank to Test CBDC With Ripple

The central bank will identify the practical application of a digital currency and come up with a design to simulate its circulation.

AccessTimeIconApr 11, 2023 at 9:46 a.m. UTC
Updated Apr 11, 2023 at 3:06 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The Central Bank of Montenegro, or CBCG, plans to develop a pilot program for a central bank digital currency with blockchain provider Ripple, even as it uses the euro as its de facto currency.

The central bank will identify practical applications of a CBDC and come up with a design to simulate its circulation, Ripple announced on Tuesday.

The project will "analyze the advantages and risks that CBDCs or national stablecoins could pose concerning electronic means of payment availability, security, efficiency, compliance with regulations, and most importantly, the protection of end users’ rights and privacy,” CBCG Governor Radoje Zugic said in the statement.

Montenegro is not a member of the European Union, but it has adopted the euro without joining the eurozone. The European Central Bank and EU are set to decide whether to introduce a digital euro later this year.

More than 100 countries are exploring the possibility of issuing a CBDC, which is a digitized form of central bank money for use by the public.

CORRECTION (April 11, 12:00 UTC): Corrects penultimate paragraph to say Montenegro is not an EU member and thus not in the eurozone; adds background of the country's relationship with the euro. An earlier version of the article incorrectly stated that Montenegro is in the EU and eurozone.

Edited by Sheldon Reback.





Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Jamie Crawley

Jamie Crawley is a CoinDesk news reporter based in London.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.



Read more about