NBG Takes a Bold Step Towards a Digital Future
The National Bank of Georgia (NBG) is shaking things up in the digital currency realm by announcing plans to advance research for a central bank digital currency (CBDC), commonly known as the digital lari. But don’t worry, Georgia isn’t just jumping on the crypto bandwagon; they’re steering the ship, albeit with limited-access pilot programs. With a lineup of nine contenders including the tech powerhouse Ripple Labs, the NBG plans to figure out who gets to swim with the sharks in the next round of testing.
The Two-Tier Design Big Idea
So, what’s this two-tier design the NBG is contemplating? Think of it as a digital lari that comes equipped with third-party wallets. Yes, that’s right! The future is programmable and ready to embrace asset tokenization. In simpler terms, it’s like giving your digital currency a fancy education and allowing it to play nice with other financial tools. Talk about sophistication!
Use Cases: More Than Just Buying Coffee
In an interview with Varlam Ebanoidze, NBG’s head of fintech, some exciting use cases were discussed that could revolutionize the economy. Imagine using the digital lari for providing agricultural insurance or automating real estate transactions! That’s not just waving a magic wand; it’s applying some serious tech to everyday problems. And let’s not forget the audacious ambition of interoperability with the digital euro while maintaining that sweet, sweet monetary freedom.
A Timeline in the Making?
Now, if you were holding your breath for a definitive timeline, it’s your time to exhale because the NBG has been a bit coy. They first suggested the idea of issuing a CBDC back in May 2021. Fast forward to January when they put out a call for fintech firms to join in on the experimental fun, but alas, a calendar date still eludes us.
Joining Global Initiatives: The NBG’s International Moves
More recently, the NBG has decided to hop on the global stage, announcing their participation as an observer in the Bank of International Settlements’ mBridge project. This innovative initiative aims to enhance cooperation in digital currency among various nations, including China and the UAE. And if that wasn’t enough, they’re also getting cozy with Project Aurum to soak up some knowledge. It seems Georgia is not just thinking about their backyard; they’re looking at the global playground!
Ripple and Friends: The Diverse Pilot Participants
So, who are the lucky companies that have made the cut to be part of this digital lari pilot? Aside from Ripple Labs, the list includes heavy-hitters like Augentic, Bitt, Broxus Holdings, and others. These firms have shown they possess the technological prowess and experience required for this challenging digital adventur. If you’re keeping up, it’s like the Olympic Games of fintech, and everyone wants to take home the gold!
+ There are no comments
Add yours