Ripple, a leading developer of blockchain technology and digital payments, continues to expand its influence in the field of international digital payments by offering its technology to various central banks worldwide. The partnership with the National Bank of Georgia (NBG) is another step in this strategy, underscoring the company’s commitment to developing the global digital economy.
In September 2023, the NBG announced plans to explore and develop a Central Bank Digital Currency (CBDC), inviting nine companies, including Ripple Labs, to participate in the “Digital Lari” project. As a result, Ripple was selected as the official technology partner for this pilot project. The Ripple CBDC platform will enable the central bank and financial institutions to seamlessly issue, manage, transact, and redeem digital currencies, ensuring the security and transparency of all operations. This partnership aims to promote the digitalization of the country’s economy and integrate the latest technologies into the financial sector.
The essence of this partnership lies in the development and implementation of the central bank digital currency (CBDC) called “Digital Lari.” This project will enhance financial inclusion,
expedite and simplify financial transactions, and strengthen financial stability in the country. In this collaboration, Ripple provides its advanced CBDC platform based on the energy-efficient and open blockchain technology, XRP Ledger (XRPL).
Beyond Georgia, Ripple is actively involved in CBDC development projects in countries such as Colombia, Bhutan, Palau, and Montenegro. These initiatives highlight Ripple’s crucial role in the digital transformation of central banks worldwide.
James Wallis, Ripple’s Vice President for Central Bank Engagements, noted that the partnership with the NBG will achieve significant transformations in the use of blockchain technology in the public sector, leading to more secure and transparent transactions.
XRP Ledger (XRPL) is an open blockchain, meaning its code is accessible to everyone. Anyone can contribute to the development of this technology. Due to its openness, developers from around the world can make improvements and add new features, fostering continuous development and adaptation of XRPL to new requirements and challenges.
One of the key advantages of the CBDC platform based on XRPL is its transparency and security. All transactions are recorded in a public ledger, which can be verified and tracked, ensuring a high level of trust and protection. The speed of transactions is another important advantage: XRPL allows for virtually instant operations, which is particularly valuable for real-time financial transactions.
The platform is also known for its low fees, making it attractive for mass financial applications where cost minimization is critical. Additionally, XRPL integrates easily with other systems and offers high scalability, enabling it to handle large volumes of transactions without performance loss, which is crucial for global financial networks.
Using this advanced technology in the “Digital Lari” project will not only strengthen Georgia’s financial system but also demonstrate the potential of blockchain technology in the digitalization of the economy on an international level. This partnership not only promotes the integration of cutting-edge technologies into the financial sector but also strengthens Georgia’s position in striving to be among the leaders in financial innovation.
