Ripple, a leading provider of blockchain solutions for cross-border payments, has been selected by the National Bank of Georgia (NBG) as one of the nine potential technology partners for its second Central Bank Digital Currency (CBDC) pilot project. Ripple aims to leverage its expertise in digital currency systems and collaborate with NBG to develop and test the Digital GEL project.
NBG’s Approach and Strategy for Developing its CBDC
NBG is making significant progress in its CBDC project, which aims to enhance the efficiency and inclusiveness of the domestic payment system and financial sector.
NBG has announced that it will launch a “Limited Access Live Pilot Environment” to evaluate the technological capabilities and potential applications of the CBDC system through various use cases.
To achieve this goal, NBG has conducted extensive research and assessment and has shortlisted nine companies that have demonstrated sufficient technology potential, maturity, capacity, relevant experience and desire to join the project.
These companies include AUGENTIC GmbH, Bitt Inc., Broxus Holdings Ltd., Currency Network Ltd., DCM Corp Limited, eCurrency Mint Inc., FARI Solutions Ltd., Ripple Labs, Inc., and Sovereign Wallet Co., Ltd.
NBG has adopted a “technologically agnostic” approach, allowing it to explore different technological solutions offered by these shortlisted companies.
Upon completion of the selection process, NBG will identify a single technology partner to move to the pilot phase, where the chosen partner will test the CBDC platform in a limited-time live environment and assess its practical use cases.
This marks a significant step forward in developing and implementing the Digital GEL project, demonstrating NBG’s commitment to embracing innovative CBDC solutions.
Ripple’s Value Proposition and Vision for CBDCs
Ripple’s inclusion as a potential technology partner underscores its growing prominence in the CBDC space and its dedication to collaborating with central banks worldwide.
The platform is built on a private ledger that is based on XRP Ledger technology—a proven blockchain that has transacted over 70 million times for ten (10) years and is trusted by financial institutions around the world.
It also supports interoperability and overlay services, enabling CBDCs to connect to domestic payment systems, core ledgers, and other CBDCs.
Moreover, Ripple’s platform is committed to sustainable innovation through its carbon-neutral technology, which uses a unique “consensus” mechanism that consumes negligible energy.
The outcome of this partnership has the potential to shape the future of digital currencies and their applications in the global financial landscape. As
Ripple continues to explore CBDC solutions in various countries, such as Palau and Bhutan, its expertise in blockchain technology and cross-border payments remains at the forefront of innovation in the crypto industry.
XRP Price Benefits from the Announcement
The XRP price was up 2% over the past 24 hours and traded at $0.509 on Friday, while its volume fell 5% to $759.30 million.
Although the announcement could have triggered some gains in the crypto price, it is expected that the bullish momentum in the broader market has also bumped up its prices.
