Ripple, the software company behind the XRP cryptocurrency, announced Thursday it has signed a groundbreaking deal with the National Bank of Georgia (NBG) to pilot a central bank digital currency (CBDC) project named the Digital Lari by leveraging the capabilities of the XRP Ledger.
Georgia’s Central Bank Taps Ripple To Pilot Digital Lari
Ripple said in its announcement that the collaboration will entail using Ripple’s CBDC platform to implement and execute the Digital Lari pilot program.
Ripple’s CBDC platform uses XRPL — a public blockchain — to give central banks and other financial organizations a seamless and scalable way to mint, manage, and redeem CBDCs. By utilizing this revolutionary platform, NBG seeks to explore the potential benefits and use cases of Digital Lari for the public sector, businesses, and retail users.
A CBDC is a digital version of a nation’s fiat currency backed by a central bank. CBDCs are digital assets but are different from the likes of Bitcoin or Ether because a single, centralized body controls them.
Ripple underwent a thorough and competitive selection process involving nine shortlisted companies before being selected as the official technology partner for NBG.
“The committee selected Ripple due to its technical excellence and the expertise of its team,” said Natia Turnava, Acting Governor of NBG, in the statement. “We look forward to moving ahead with Ripple.”
Ripple noted that the firm’s “deep understanding” of the project’s objectives and deep experience in real-life pilot deployments were key in securing the collaboration.
Ripple Emerges As First Choice For CBDC Adoption
Back in July, Ripple was awarded by Currency Research for its contributions to the Digital Currency Advancement and Best Sustainability Initiative. In particular, Ripple was recognized for its role in promoting innovation in the sector of central bank digital currencies.
The pilot with Georgia’s central bank marks Ripple’s sixth CBDC project with governments after Montenegro, Palau, Bhutan, Colombia, and Hong Kong. The blockchain payments firm revealed it is in talks with more than 20 countries globally about potential partnerships.