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- Ripple Labs emerged as the official partner for Georgia’s CBDC after fierce competition with nine technology companies.
- It is reported that Ripple was selected for its track record and deep understanding of the purpose and use cases of the project.
It was previously reported that the National Bank of Georgia (NBG) is testing its version of the Central Bank Digital Currency (CBDC), but in a limited environment. The announcement also mentioned the participation of nine technology companies of which one was supposed to be selected as the main partner of all the subsequent stages.
After some observations and monitoring, Ripple Labs Inc. has been given the nod to be the official technology partner for the CBDC, also called the digital Lari.
Why Ripple was Chosen For this Project
According to the bank, the deep understanding of the project’s purpose and use cases by Ripple was part of the main reason for its selection. Ripple has an undoubted track record of conducting a real-life pilot project deployment. This cut across several fields including the CBDC digital infrastructure, smart contracts, and tokenization.
The test is meant to ensure that Ripple’s CBDC technology is used to experiment and evaluate the practical use cases of the project to ascertain its benefit for the general public, businesses, and retail users.
Natia Turnava, Acting Governor and Member of the Board of the National Bank of Georgia spoke about Ripple’s selection:
We were pleased to select Ripple as the official technology partner for our Digital Lari (GEL) pilot project following a thorough review of all shortlisted parties. The committee selected Ripple due to its technical excellence and the expertise of its team. We look forward to moving ahead with Ripple, we are grateful to all other participating companies for their interest and efforts in the selection process.
XRPL Powers the Ripple’s CBDC Platform
Ripple’s CBDC platform is backed by the XRP Ledger (XRPL) and is quite popular within the industry. Some industry key players have lauded it for its end-to-end solution that enables banks, financial institutions, and governments to successfully and seamlessly mint, manage, transact, and redeem CBDC. It is also worth noting that Ripple was chosen among the likes of “eCurrency Mint Inc, Currency Network Ltd, Sovereign Wallet Co., Ltd, DCM Corp Limited, Bitt Inc, AUGENTIC GmbH, Broxus Holdings Ltd, FARI Solutions Ltd.”
James Wallis, VP of Central Bank Engagements at Ripple has commented on this partnership.
The National Bank of Georgia is taking a global lead in exploring how it can use blockchain technology to take its economy into the digital era. By harnessing the power of the Ripple CBDC Platform, this pilot will pave the way for transformative advancements in the utilization of blockchain technology within the public sector. Our partnership with NBG demonstrates our commitment to driving innovation and efficiency, ultimately empowering public and private entities to unlock the full potential of secure and transparent blockchain transactions.
As of press time, Ripple had announced five pilot programs with Bhutan, Palau, Montenegro, Colombia, and Hong Kong. On top of that, the blockchain company is in talks with more than 20 countries.
In the case of Georgia’s CBDC, the project would be made for agricultural insurance as well as the automation of real estate transactions. It would also be made compatible with the digital Euro according to Varlam Ebanoidze, Head of FinTech at NGB.
