Ripple Joins Forces with National Bank of Georgia to Bolster CBDC Development
Ripple has teamed up with the National Bank of Georgia to further explore the use cases of a central bank digital currency (CBDC) use cases within the country.
“By harnessing the power of the Ripple CBDC Platform, this pilot will pave the way for transformative advancements in the utilization of Blockchain technology within the public and private sectors,” the statement noted.
Ripple Triumphs in Intense Competition
A recent statement indicates that the National Bank of Georgia’s decision to partner with Ripple for work on the Digital Lari involved careful consideration:
“The decision was made by the committee comprising internal and external experts of the National Bank of Georgia following a competition process, which consisted of two phases: submission of a Project Execution Plan (PEP) by shortlisted candidates in the first phase, and demonstration of their technology solutions in the second.”
The statement didn’t specify competing firms but emphasized Ripple’s technical superiority and staff expertise.
The statement also emphasized that the bank chose Ripple’s CBDC platform because of its experience in conducting pilot programs elsewhere:
“Ripple’s CBDC platform stands out for its ability to provide central banks, financial institutions, and governments with holistic end-to-end solutions. The company is currently conducting five pilot programs with different countries’ governments and central banks.”
Georgia’s Ongoing CBDC Consideration
Ripple recently introduced a new XRP ledger-based CBDC platform. This lets governments and banks control digital currency flow through methods like minting, distribution, redemption, and destruction.
In May 2021, BeInCrypto reported that the National Bank of Georgia was inviting technology firms, fintech companies, and financial institutions to assist with developing a CBDC for the nation.
The statement also emphasized that a CBDC could unlock business value and drive national economic growth.
At the time of publication, the bank was reportedly concentrating on implementing a modular approach. All in all, it aims to enhance retail convenience and ensure interoperability. This necessitates extensive research and development, with no specified launch date.