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- 1 The National Bank of Georgia has chosen Ripple Labs for its CBDC project, Digital Lari.
- 2 For Ripple, it’s a big achievement and the second collaboration with the government.
- 3 It’s a positive development for the firm and the crypto industry that’s seeking more mainstream exposure.
In the beginning, the governments and central banks ridiculed cryptocurrency. However, as decentralization gained traction everywhere, all the institutions changed their stance. Today, the central banks of various nations are on the verge of adopting Central Bank Digital Currencies (CBDC). It’s a form of cryptocurrency that the government would control. In the same vein, Georgia made a significant announcement that drew the attention of the whole crypto community.
Here’s How Georgia Came To Pick Ripple For Digital Lari
Ripple announced that it has partnered with the National Bank of Georgia (NBG) for its CBDC project. The currency will be called the Digital Lari. In the official statement, the firm provided more details about the vision of this initiative. It said that the focus would be on the future of digital finance. The program will explore the usage possibilities for businesses, governments, and individuals.
Reportedly, Ripple had to go through a stringent selection process for this coveted venture. NBG revealed its intent to roll out the CBDC in September. It said that the bank would soon launch it with limited access.
Notably, the bank has roped in nine different firms for the nascent phase of the project. All these companies have been chosen on their background, expertise, potential, and willingness to work in such an undertaking.
Some of them are DCM Corp., Currency Network, Broxus, Bitt Inc., Augentic, and others along with Ripple. The selection committee of the bank assessed them on various grounds. It ensured that every chosen company could understand the project’s objectives and applications.
A Milestone For Ripple
Back in July, Ripple was recognized by Currency Research for its efforts in CBDC innovations. The global conference provider underlined its significant contribution to advancing digital currencies. Even before bagging this partnership with NGB, Ripple had started foraying into CBDC. It collaborated with Banco de la Republica, Colombia’s central bank to evaluate the possibilities of digital peso pilot.
These projects indicate that Ripple is establishing itself in the growing CBDC space. For a firm that’s engaged in a legal battle with the SEC for irregularities, it’s especially a major feat. The crypto firm is gaining prominence and emerging as a reliable option for governments. These recent projects give the company more credibility. With them, it can become a leader in the CBDC movement across the globe.
What Does it Mean for the Crypto Space?
The growing interest of institutions in crypto indicates that they’re keen to adopt blockchain in one way or another. For cryptocurrency purists, CBDC is a compromised version of the decentralized asset.
However, it doesn’t truly embrace the technology and ensures that control is maintained in someone’s hands rather than distributing it. However, it’s at least a start and many are happy with it. Like Georgia and Colombia, many other countries are working on their digital currency projects.
In the next few years, the crypto community is expecting CBDCs from many leading nations. Hopefully, it’ll get more attention in the global summits as well.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
