- The blockchain would help the Balkan nation test the risks and opportunities in establishing a national stablecoin.
- In the case pitting Ripple with SEC, a pro-Ripple lawyer recently dispelled views that XRP holders acquired the digital asset because of Ripple.
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Global payments-focused blockchain company Ripple is collaborating with the Central Bank of Montenegro (CBCG) on a strategy and pilot program to develop the country’s first national stablecoin.
The program, which will reportedly go through several test phases, aims to check the advantages and risks CBDCs face regarding availability, efficiency, security, regulations and privacy. Furthermore, according to the press release, the collaboration would also assist in looking into the digital asset’s practical aspects, design, and adoption.
“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,” CBCG Governor Rodoje Zuric said.
Montenegro is currently using the euro, although it is not part of the European Union (EU), which is also contemplating a launch of a digital euro later in the year.
A central bank digital currency is a digitized version of the country’s currency issued by its central bank. There are currently hundreds of countries exploring the potential of a CBDC in their respective jurisdiction. Some of the use cases of virtual currency include financial inclusion, adopting a modern monetary system, and improving payment security.
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The latest development in Ripple vs SEC lawsuit
Meanwhile, in the run-up to the conclusion of the longstanding Ripple versus the Securities and Exchange Commission (SEC)case, there are emerging speculations on how the case might be concluded. In a recent tweet, pro-Ripple lawyer John Deaton dismissed views that Ripple pushed investors to purchase XRP.
Deaton said that the token investors bought the digital currency completely unaware of the entity behind it, Ripple. The position is against that of the regulator, that Ripple sold XRP as unregistered security against the law.
“For several years, I have heard some people say XRP holders only acquired (the token) because of Ripple. I know for a fact, that the majority of purchasers of XRP were completely unaware of the company Ripple when acquiring XRP for the first time. I explained, it’s about the tech, not Ripple,” Deaton wrote.
Attorney Jeremy Hogan shared similar sentiments saying the case could be ruled in favour of the blockchain if the judge is conversant with the technology. According to the Hogan and Hogan attorney, since cryptocurrency is decentralized, there is no contract when buying digital currencies.
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