In a recent development, Ripple Labs and the National Bank of Georgia (NBG) are progressing on their exploration of a central bank digital currency (CBDC), specifically the Digital Lari. The partnership, announced Sunday, is aimed at investigating the potential of blockchain technology in stimulating economic growth and business value within Georgia.
Ripple's CBDC platform was chosen for this project after a competition that involved the submission of Project Execution Plans (PEPs) by various candidates. The platform, which operates on Ripple's new XRP ledger-based system, offers comprehensive end-to-end solutions and has proven experience from five pilot programs conducted globally. It provides control over digital currency flow, an essential feature for a central bank digital currency.
The NBG has been actively seeking assistance from tech and financial firms since May 2021 to develop a CBDC. The bank is implementing a modular approach to boost retail convenience and interoperability, expecting transformative advancements in blockchain technology utilization. However, no specific launch date has been set for the Digital Lari.
Earlier, it was revealed that Ripple Labs and NBG embarked on Georgia's first CBDC pilot program. This significant step towards digitizing the national currency, Lari (GEL), will leverage Ripple's CBDC platform to demonstrate how CBDCs can be effectively minted, managed, transacted, and redeemed.
Ripple was chosen over nine other contenders due to its deep understanding and commitment to the project. The platform will be tested in a live environment for selected use cases during the pilot phase. James Wallis, Vice President of Central Bank Engagements at Ripple, commended the NBG for leading the exploration of blockchain technology in the country.
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