Ripple to Develop CBDC with Central Bank of Montenegro

Central Bank of Montenegro partners with Ripple to develop Montenegrin digital currency strategy and pilot program.

A man in blue overalls holding a blue notebook standing next to a human hand holding stablecoin.
  • Montenegro’s central bank has partnered with Ripple to develop a CBDC strategy.
  • The project has undergone various stages, including a sandbox stage for controlled circulation.
  • Ripple has been expanding its presence in the CBDC space with multiple ongoing projects worldwide.

In a move highlighting the country’s commitment to modern banking trends, the Central Bank of Montenegro partnered with Ripple to create a strategy and pilot program for a Montenegrin digital currency. 

This currency will take the form of a central bank digital currency, or stablecoin. This digital currency will be used to supplement the euro, which is the country’s de facto currency despite it being in neither the EU nor Eurozone.


According to James Wallis, RippleX’s vice president for central bank engagements and CBDCs, the project will undergo various stages, starting with identifying practical applications for the digital currency. The sandbox stage will follow, allowing the currency to be circulated under controlled conditions. 

The aim is to work closely with the central bank to determine use cases, key success factors, and timelines. The project is scheduled to begin this month, with more details to be announced later in the year.

Montenegro Governor Highlights Benefits of National Stablecoins and CBDCs

Governor Radoje Žugić of the Central Bank of Montenegro has stressed the importance of working with the government and academic community to analyze the advantages and risks of national stablecoins or CBDCs, focusing on security, efficiency, compliance with regulations, and the protection of end-users’ rights and privacy.

Montenegrin Prime Minister Dritan Abazovic announced the partnership between Ripple and the Montenegrin Central Bank at the World Economic Forum in Davos earlier this year. The move comes as Ripple expands its presence in the CBDC space, with multiple CBDC projects ongoing worldwide and dialogue with dozens of central banks globally.

On the Flipside

  • The use of stablecoins, in particular, has come under scrutiny due to their lack of regulation and potential for volatility.
  • The project’s success will depend on factors such as adoption rates, government support, and the ability to create a stable and reliable digital currency.
  • It is currently unclear whether the Montenegrin population will accept the introduction of a digital currency or stablecoin alongside the euro.

Why You Should Care

The partnership between Ripple and the Central Bank of Montenegro marks a significant milestone for Ripple’s expansion in the CBDC space. This collaboration could pave the way for other global CBDC projects with central banks. 


For Montenegro, introducing a digital currency could enhance its financial system’s efficiency and accessibility, potentially attracting more foreign investment. As for the crypto space, the partnership between Ripple and Montenegro could provide more legitimacy to stablecoins and CBDCs.

To learn more about the regulatory status of Ripple’s XRP, and why it’s not considered a security, read here:

Ripple XRP Not a Security Under SEC Howey Test, Says Lawyer Jeremy Hogan

If you’re interested in the latest criticisms of MicroStrategy‘s Bitcoin strategy, read this recent article:

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.