The central bank will determine the practical application of digital currency and devise a simulation of its circulation.
Despite using the euro as its de facto currency, the Central Bank of Montenegro (CBCG) intends to develop a pilot program for a central bank digital currency with blockchain provider Ripple.
Ripple announced on Tuesday that the central bank will identify practical applications for a CBDC and create a simulation of its circulation.
The initiative will “evaluate the benefits and risks that CBDCs or national stablecoins may pose to the availability of electronic means of payment.”
In the statement, CBCG Governor Radoje Zugic emphasized security, efficiency, compliance with regulations, and, most importantly, the preservation of end users’ rights and privacy.
Montenegro is not an EU member, but it has adopted the euro without entering the eurozone. Later this year, the European Central Bank and the EU will determine whether to introduce a digital euro.
More than one hundred countries are investigating the possibility of issuing a CBDC, which is a digitized form of public central bank money.
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