The National Bank of Georgia (NBG) has partnered with Ripple as the official technology provider for its Central Bank Digital Currency (CBDC) pushing for a pilot in the near term.
In a Nov 2 press release, blockchain payment firm Ripple announced that it has been selected to power the Digital Lari following a competitive process.
Today, we announce a partnership with the National Bank of Georgia (NBG) on the Digital Lari (GEL) pilot project. The pilot will leverage Ripple’s award-winning #CBDC Platform to evaluate practical use cases & benefits for the public sector & businesses.🇬🇪 https://t.co/rtE3zxlAkm
— Ripple (@Ripple) November 2, 2023
The bank explained that the firm was selected because of its technical expertise around the sector with previous pilot deployments, and primary CBDC infrastructure and can lead to a successful development.
“… deep understanding of the project’s purposes and use cases, as well as full commitment to the project’s success, sustainable business continuity, clear project development roadmap, and gradual deployment approach to use-cases.”
Per the announcement, Ripple and the Bank of Georgia will plan for the execution and delivery leveraging on the former’s CBDC platform to offer use cases for public, private, wholesale, and retail customers.
The move is expected to drive innovation in the country with financial institutions onboard in future pilots to take the economy to a new era and improve local and cross-border monetary settlements.
The NBG previously chose nine firms for their technical expertise and support for CBDCs as the country aims to toe the line of other nations.
Ripple to power the digital lari
According to the statement, the company stood out for its solution, Ripple CBDC Platform, a technology-driven by its XRP Ledger that provides an easy and secure way for Central Banks, governments, and financial institutions.
Natia Turnava, Acting Governor of the NBG explained that the move benefits the country and all parties involved while thanking the other participants.
“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.”
Ripple’s CBDC platform is currently in use in five different digital currency pilots around the world and according to James Wallis, the Vice President of Central Bank Engagements at Ripple, the country’s economy will be positioned to the digital era.
“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 and private sectors. Our partnership with NBG demonstrates our commitment to driving innovation and efficiency…”
Ripple changing cross-border payments
Aside from its XRP token, Ripple Labs seeks to change the CBDC landscape as it is currently in talks with 20 countries to partner in their potential pilot programs in addition to Colombia, Hong Kong, Montenegro, Bhutan, and Palau.
Ripple has also been awarded by Currency Research at the 2023 Digital Currency Conference for our: Advancement in Digital Currency, Best Sustainability Initiative, and was lauded for rolling out sustainable solutions.
Several countries now view CBDCs as a solution to revive the economy, widen the tax net, and onboard faster cross-border solutions while competing with private cryptocurrencies.
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