Georgia's National Bank Advances Research on Digital Lari CBDC with Nine Potential Partners
Summary:
The National Bank of Georgia (NBG) plans to advance its research on a central bank digital currency (CBDC), the digital lari, in a reduced-access live trial. Nine companies, including Ripple Labs, will participate with one to be selected for additional testing. The CBDC is considered to have a two-tier structure, provided by third-party wallets, and it might support asset tokenization. NBG, also an observer in the Bank of International Settlements' Project mBridge, aims to integrate with the European Union while preserving monetary autonomy.
The National Bank of Georgia (NBG) has declared its intentions to progress its research into a digital central bank currency (CBDC), referred to as the digital lari, in a restricted-access operational trial environment. Nine firms, including Ripple Labs, will be involved in this initiative, one of which will be chosen for further testing. Earlier in February, the NBG conveyed through a paper that it was considering a two-tier structure for its CBDC, where third-party-provided wallets would be utilized. The proposed digital currency would have the ability to be programmed and support asset tokenization. Varlam Ebanoidze, who is in charge of fintech at the NBG, mentioned in an interview in June that potential applications for a digital lari could be in the provision of agricultural insurance and digitization of property transactions. He emphasized, "Our ambition involves integration with the European Union, maintaining compatibility with the digital euro but preserving monetary independence."
The NBG first mooted the idea of issuing a CBDC in May 2021, without providing a specific timeline. In January, it stated it was seeking interested fintech firms to be part of the operational trial. Related to this, on September 8th, the NBG revealed its observer status in the Bank of International Settlements’ (BIS) Project mBridge, a multinational collaboration involving China, Hong Kong, Thailand and the United Arab Emirates; about ten other countries are also observers. The NBG proclaimed plans to "utilize knowledge and expertise" from BIS’s Project Aurum.
The nine companies shortlisted by the NBG for this initiative, aside from Ripple, are Augentic, Bitt, Broxus Holdings, Currency Network, DCM, eCurrency Mint, FARI Solutions and Sovereign Wallet. Ripple is internationally recognized for its involvement in CBDC projects across sections of the globe including Colombia, Montenegro, Hong Kong, Bhutan and Palau. As per a recent magazine article, in Georgia, cryptocurrency plays a significant role in aiding refugees fleeing conflict zones.
Published At
9/29/2023 6:50:42 PM
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