The Central Bank of Montenegro (CBCG) has signed an agreement with Ripple to develop a strategy and pilot program for a central bank digital currency (CBDC).
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In a press release on Tuesday, the San Francisco-based fintech company said the project will go through several stages. Ripple will identify the "practical application" of a CBDC as well as the design to simulate its circulation.
The CBCG Governor, Radoje Žugić, said the parties are yet to decide whether they should develop a CBDC or a stablecoin:
"Through the project, the CBCG will work with the Government of Montenegro and Montenegro's academia to create a practical digital currency or secure currency solution to test the main blockchain technology’s functionality and potential."
Ripple didn't specify the timeframe for the project. As iHodl earlier reported, Palau's president, Surangel Whipps, also announced cooperation with Ripple Labs as part of a project to create a "national stablecoin."
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