The central bank of Montenegro is collaborating with Ripple to create a central bank digital currency (CBDC), according to the country's prime minister, Dritran Abazonic. According to reports, while attending the most recent World Economic Forum in Davos, Switzerland, the country's Prime Minister had a meeting with Ripple CEO Brad Garlinghouse and Vice President James Wallis.
The nation has been using the Euro since 2002 and does not currently have a national currency of its own. This leads to an intriguing development for the nation's own stablecoin or digital money. The only time the prime minister has used Twitter thus far is to confirm the joint initiative to start a CBDC pilot project.
Despite applying in 2008, Montenegro, a country in the Balkans, is not presently a member of the EU. On the other hand, it has embraced the Euro since the global currency's introduction thirty years ago. Therefore, the lack of a distinct national currency in Montenegro poses the biggest challenge to the growth of the Montenegro Central Bank and the Ripple CBDC.
The Montenegrin government has, however, long been interested in finding a niche within the digital asset sector. The nation held a discussion panel titled Future Now! in April. which Vitalik Buterin, the co-creator of Ethereum, participated in and later received Montenegrin citizenship.
It took until January 18 for the news that Ripple and the Central Bank of Montenegro were creating a CBDC to reach audiences outside. With "many pilots in process," Ripple advisers have highlighted recent developments in CBDC development.
The business is also a founder member of the Digital Dollar Project, which in February of last year joined the Digital Euro Association.