Ripple Labs and the National Bank of Georgia (NBG) are making significant progress in their joint initiative to explore the development of a central bank digital currency (CBDC), specifically known as the Digital Lari. This partnership, officially announced on Sunday, is focused on assessing the potential of blockchain technology to stimulate economic growth and create value within the country of Georgia.
Ripple’s CBDC platform was selected for this project through a competitive process that involved the submission of Project Execution Plans (PEPs) by multiple candidates. Operating on Ripple’s new XRP ledger-based system, the platform offers comprehensive end-to-end solutions and brings substantial experience from five pilot programs conducted on a global scale. It provides crucial control over the flow of digital currency, a fundamental requirement for a central bank digital currency.
Since May 2021, the National Bank of Georgia has actively sought collaboration with technology and financial companies to develop a CBDC. The bank is implementing a modular approach to enhance retail convenience and interoperability, with expectations of groundbreaking advancements in the utilization of blockchain technology. However, a specific launch date for the Digital Lari has not yet been determined.
Previously, Ripple Labs and the National Bank of Georgia initiated Georgia’s first CBDC pilot program. This significant milestone in digitizing the national currency, the Lari (GEL), will leverage Ripple’s CBDC platform to showcase how CBDCs can be effectively created, managed, transacted, and redeemed.
Ripple was chosen as the preferred partner among nine other contenders due to its profound understanding and unwavering commitment to the project. The platform will undergo testing in a live environment for selected use cases during the pilot phase. James Wallis, Vice President of Central Bank Engagements at Ripple, commended the National Bank of Georgia for spearheading the exploration of blockchain technology within the country.
