By
Chimamanda U. Martha
April 30th, 2024
The NBG will now commence the pilot stage and test the Ripple CBDC platform in a live environment to evaluate select use cases.
The National Bank of Georgia (NBG) has chosen blockchain and crypto solutions provider Ripple as a technology partner in its Central Bank Digital Currency (CBDC) pilot project. The Digital Lari (GEL) project will use Ripple’s CBDC technology – which is powered by the XRP Ledger (XRPL) – to investigate the practical use cases and potential benefits of a CBDC for the public sector, businesses and retail users.
In its official announcement, the central bank stated that it had chosen Ripple due to its “deep understanding of the project’s purposes and use cases, as well as a full commitment to the project’s success, sustainable business continuity, clear project development roadmap, and gradual deployment approach to use-cases.” It added that the firm, which had to go through a competitive selection process, has “experience in conducting real-life pilot project deployments, ranging from primary CBDC digital infrastructure to smart contracts and tokenization.”
Natia Turnava, the Acting Governor and Member of the Board of the National Bank of Georgia, said of the partnership:
“We were pleased to select Ripple as the official technology partner for our Digital Lari (GEL) pilot project following a thorough review of all shortlisted parties. The committee selected Ripple due to its technical excellence and the expertise of its team. We look forward to moving ahead with Ripple, we are grateful to all other participating companies for their interest and efforts in the selection process.”
The blockchain solutions provider was chosen out of nine shortlisted companies which were tested on their capability to effectively support the project. With a technology partner now chosen, the NBG will now commence the pilot stage and test the Ripple CBDC platform in a live environment to evaluate select use cases.
James Wallis, VP of Central Bank Engagements at Ripple said:
“By harnessing the power of the Ripple CBDC Platform, this pilot will pave the way for transformative advancements in the utilization of blockchain technology within the public sector. Our partnership with NBG demonstrates our commitment to driving innovation and efficiency, ultimately empowering public and private entities to unlock the full potential of secure and transparent blockchain transactions.”
Ripple is working on five CBDCs with governments and central banks in Bhutan, Palau, Montenegro, Colombia, and Hong Kong. It is also in talks with more than 20 countries around the world.