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Ripple ready to fuel state-backed blockchain products in crypto-friendly Montenegro

Montenegro stated its ambition to build CBDC in collaboration with Ripple just days after Do Kwon, the founder of Terra Labs, was arrested on fraud charges. While the specific technical shape of the joint product has yet to be announced, a relationship with the digital payments heavyweight based in the United States will open up new options for Montenegro’s financial system.

Montenegro has indicated an interest in digital currencies and asked Ripple to build a pilot program and strategy for a national digital currency or CBCG stablecoin. According to the press release, the new currency would be created as a “national stablecoin” or another type of central bank digital money (CBDC).


According to Montenegrin Governor Radoje Žugić, their collaboration with Ripple aims to create a secure practical digital currency to test blockchain’s functionality and potential.

It will also assess the benefits and dangers CBDCs may bring to the availability, security, and efficiency of electronic payment methods while ensuring regulatory compliance. Above all, Zugic stated that the CBDC would preserve citizens’ rights and privacy. Their collaboration with Ripple to create Montenegro’s first digital currency is an important step toward financial inclusion and accessibility for its residents.

In recent years, Ripple has been at the forefront of CBDC development. The blockchain firm aims to integrate diverse payment systems while promoting blockchain’s utility in CBDC development and resolving global payment concerns.

CBDCs, which differ from privately issued stablecoins such as the defunct UST or USDT, are gaining traction globally. CBDCs are government-backed and can be issued on a private network. CBDCs can be used to increase financial inclusion, modernize monetary policy, improve payment security, and increase cross-border payment efficiency. It, conversely, has been condemned as a potential instrument for governments to censor dissidents and infringe on privacy.

The European Central Bank (ECB) is working on the Digital Euro concept as a future means of safe, secure, and convenient electronic payment in the eurozone.

Ripple has emerged as a global CBDC market leader. It is the sole platinum sponsor of the London Digital Monetary Institute Symposium 2023, one of the most important events in this field. Furthermore, Ripple partners in several CBDC efforts related to the world’s main currencies: the Euro, US Dollar, and British Pound.

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