In a recent development, Ripple Labs and the National Bank of Georgia (NBG) are advancing their exploration of a central bank digital currency (CBDC), specifically the digital lari. The partnership, announced on Sunday, aims to explore the potential of blockchain technology to drive economic growth and business value in Georgia.
Ripple‘s CBDC platform was selected for the project following a competition in which various candidates submitted project execution plans (PEPs). 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 around the world. It provides control over the flow of digital currency, an essential feature for a central bank digital currency.
Since May 2021, NBG has been actively seeking support from technology and financial companies to develop a CBDC. The bank is implementing a modular approach to enhance retail convenience and interoperability, and expects transformative advances in the use of blockchain technology. However, no specific launch date has been set for the digital lari.
Previously, it was announced that Ripple Labs and NBG have launched Georgia’s first CBDC pilot program. This significant step toward digitizing the national currency, the lari (GEL), will leverage Ripple’s CBDC platform to demonstrate how CBDCs can be effectively minted, managed, transacted and redeemed.
Ripple was selected over nine other contenders based on its deep understanding and commitment to the project. During the pilot phase, the platform will be tested in a live environment for selected use cases. James Wallis, Vice President of Central Bank Engagements at Ripple, praised the NBG for leading the exploration of blockchain technology in the country.
