Financial news

Ripple, the real-time gross settlement system, currency exchange and remittance network, has powered the central bank digital currency (CBDC) pilot programmes for Columbia and Montenegro this past year, and now it has added the Digital Lari (GEL) to that list. This follows the National Bank of Georgia (NBG) selecting Ripple as its official technology partner. 

There were nine possible contenders, with Ripple emerging victorious. Now, using the Ripple CBDC technology, the NBG can evaluate the practical use cases of a digital currency. Specifically for use in the public sector and any other benefits it may have for businesses and retail users.

Why Ripple?

Ripple was selected due to its sustainable business continuity, clear project development roadmap and gradual deployment approach to use cases. Furthermore, NBG listed the digital currency network’s previous experiences piloting similar projects as a reason for its selection.

These include five pilot programs with governments and central banks in Bhutan, Palau, Montenegro, Colombia, and Hong Kong and is in discussions with over 20 countries around the world.

The CBDC solution provides a holistic end-to-end solution that enables central banks, financial institutions, and governments to seamlessly mint, manage, transact and redeem CBDCs. The technology is powered by the XRP Ledger (XRPL), an energy-efficient and open-source blockchain.

Commenting on Ripple’s selection, Natia Turnava, acting governor and member of the board of the National Bank of Georgia, said: “The committee selected Ripple due to its technical excellence and the expertise of its team. We look forward to moving ahead with Ripple. We are grateful to all other participating companies for their interest and efforts in the selection process.”

Looking to the future

Now that the selection phase is complete, NBG will move to the pilot stage. Here, it will test the Ripple CBDC platform in a live environment to enable it to evaluate select use cases.

James Wallis, VP of central bank engagements at Ripple, added: “The National Bank of Georgia is taking a global lead in exploring how it can use blockchain technology to take its economy into the digital era. By harnessing the power of the Ripple CBDC Platform, this pilot will pave the way for transformative advancements in the utilisation of blockchain technology within the public sector.

“Furthermore, our partnership with NBG demonstrates our commitment to driving innovation and efficiency. Ultimately, it empowers public and private entities to unlock the full potential of secure and transparent blockchain transactions.”