Ripple and the National Bank of Georgia Cooperate for Digital Currency

With Georgia, Ripple has found another country where the national bank wants to test a stately digital currency (CBDC) in cooperation. This means that Ripple is now the official partner for CBDCs in six countries worldwide.

Ripple (XRP) has been successfully promoting the use of its technology in the creation of state digital currencies for a good two years. Now another cooperation partner, the National Bank of Georgia, has been presented in a press release. The Caucasus state of Georgia wants to test a digital version of its national currency, the lari. In its press release, the national bank calls Ripple an “international flagship company.”

In fact, Ripple can now boast a total of half a dozen countries in which CBDC pilot projects are underway. In addition to Georgia, Palau, Bhutan, Montenegro, Colombia and Hong Kong have entered into collaborations with Ripple. CBDCs are digital, state-supported images of national currencies. In the European Union, the ECB is working on an e-euro.

For smaller countries such as Georgia, a digital version of the national currency is exciting because, among other things, it could be used to process international payments faster and at lower fees than before.

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In such CBDC projects, Ripple can draw on its expertise with XRP, which fulfills similar tasks as a bridge currency

However, the use of XRP is not planned in Ripple’s collaborations with CBDCs, as is now the case in Georgia. The Georgian lari has been in circulation since 1995 and is a freely convertible currency. For Georgia, the lari is also a symbol of the country’s separation from Russia and the rouble.

Ripple launched its own platform for its CBDC programs in the spring and says it is holding preliminary talks with around 20 other countries for state digital currencies. The Ripple pilot project in the Republic of Palau was named “FinTech Innovation of the Year” by Juniper Research at the beginning of October, highlighting its low energy consumption in particular.

Conclusion: Ripple confirms its pioneering role for CBDCs

Ripple’s cooperation with central banks and governments is certainly a benefit for its image. They also demonstrate that outside the US, Ripple’s legal dispute with the SEC is not being held too high. For investors, however, the benefits of Ripple’s ambitious CBDC program are not yet really apparent, as XRP has not been assigned a role there and direct synergy effects are not discernible.

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(Featured image by giorgi gvilava via Unsplash)

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