In a significant move in the world of central bank digital currencies (CBDCs), the National Bank of Georgia (NBG) has chosen Ripple Labs, a San Francisco-based blockchain company, as its technology partner for the digital Lari (GEL) pilot project. The partnership between NBG and Ripple Labs is poised to explore the potential use cases and advantages of Ripple’s CBDC platform, indicating a significant step forward for both entities.
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
Ripple’s CBDC Platform
Ripple’s CBDC platform, launched in May 2023, is designed to facilitate the issuance, management, and transactions of CBDCs by governments and financial institutions. Leveraging the XRP Ledger (XRPL), this platform equips central banks and governments with the tools necessary to navigate the complexities of CBDC management efficiently.
The selection of Ripple by the Bank of Georgia was a result of a rigorous selection process, during which nine shortlisted candidates were assessed. Ripple’s deep understanding of the project’s use cases and its extensive experience in similar initiatives played a pivotal role in this choice. Notably, the NBG recognized Ripple’s technical excellence as a deciding factor.
Empowering Public and Private Entities
Natia Turnava, the Acting Governor of NBG, confirmed that Ripple’s selection was based on its technical expertise. Ripple’s VP of Central Bank Engagements, James Wallis, emphasized the company’s commitment to empowering both public and private entities in achieving their goals.
Ripple’s growing presence in the world of CBDC development is evident through its involvement in various pilot projects worldwide, including Bhutan, Montenegro, Hong Kong, and Colombia. The company is also actively engaged in discussions with governments and central banks from more than 20 countries regarding digital currency programs.
This latest collaboration between the National Bank of Georgia and Ripple Labs underscores the growing adoption of Ripple’s technology in the global financial sector. As more institutions recognize Ripple’s expertise and technological prowess, the company is positioned as a key player in the rapidly evolving landscape of CBDCs.
The Future of CBDCs
The partnership between NBG and Ripple Labs holds promise not only for the Bank of Georgia but also for the broader adoption of CBDCs. As governments and financial institutions continue to explore the potential of digital currencies, Ripple’s CBDC platform is expected to play a pivotal role in shaping the future of financial transactions and digital currency management. The collaboration represents a significant step towards a more advanced and efficient financial ecosystem, driven by cutting-edge technology and innovation.