The Republic of Georgia is taking a step further towards a digital economy, with major cryptocurrency firm Ripple forging a closer relationship with the National Bank of Georgia (NBG). This collaboration aims to explore avenues for utilizing Ripple’s technology to facilitate the digitization process.
Building on Existing Partnership
A recent meeting between NBG Acting Governor Natia Turnava, Varlam Ebanoidze (head of the bank’s Financial and Supervisory Technology Development Department), and Ripple’s James Wallis (Vice President of Central Bank Engagements) marked a significant development.
“It was an honor to be back in Tbilisi and to introduce Alistair Brown from our partner EPAM Systems to NBG Acting Governor Natia Turnava,” said Wallis after the meeting. EPAM, a software engineering and digital solutions specialist, will likely play a role in the upcoming projects.
This new collaboration builds upon an existing partnership. Ripple is already the technological partner for the NBG’s pilot Central Bank Digital Currency (CBDC) project, the “digital lari.” The NBG announced its CBDC research initiative in September 2023 and selected Ripple Labs as its official technology partner after inviting several companies to participate.
Ripple’s Global CBDC Push
Georgia isn’t alone in exploring CBDC development with Ripple. The company is actively involved in similar pilots in Colombia, Bhutan, Palau, Montenegro, and other countries. Late last year, Ripple further solidified its commitment to CBDC adoption by releasing a comprehensive white paper advocating for their potential.
The paper highlights how CBDCs can “support the most significant positive impacts of asset tokenization,” a process of transforming real-world assets into digital tokens stored on a blockchain.
Concerns and the Road Ahead
While companies like Ripple champion CBDC development, some critics raise concerns about potential drawbacks, particularly regarding privacy issues and increased government surveillance.
Moving forward, Georgia’s collaboration with Ripple will be closely watched to see how this digital transformation unfolds and how they address potential privacy concerns. This project could serve as a model for other countries seeking to leverage blockchain technology to modernize their economies.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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