The Central Bank of Montenegro (CBCG) plans to develop a pilot program for a central bank digital currency (CBDC) or national stablecoin with blockchain provider Ripple even though it uses the euro as its de facto currency. The pilot will see the central bank identify practical applications of such a coin 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 (EU), and it has adopted the euro without joining the eurozone. The European Central Bank (ECB) and EU set to make a decision on whether to introduce a digital euro later this year.